Question: Using present worth method determine which would you choose at i = 12% You purchased an equipment at a cost of $30,000.00. After 8 years
Using present worth method determine which would you choose at i = 12% You purchased an equipment at a cost of $30,000.00. After 8 years of service life it can be sold for $10,000.00. The equipment will provide an uniform annual benefit A. Draw a cash flow diagram on a timeline for this transaction. Determine the value of A that will justify the purchase of this equipment at i= 15%. Determine the value of A.hat will make the 2 cash flows equivalent at i = 7% Note: Show all calculations
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