Associated supplies are expected to cost 10000 per year the

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Reference no: EM13628130

A consulting firm is contemplating the purchase of a BTU meter to measure the cooling loads on chillers, at a purchase price of $2,000.00. The meter has 10% and 0% salvage values at the end of 5 and 10 years, respectively. It is expected that the meter will generate income at a rate of $500.00 per year. Associated supplies are expected to cost $100.00 per year. The firm's discount rate is 10%. Compute the present worth of this investment for 5 years and for 10 years.

Reference no: EM13628130

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