Calculate the annual worth of the upgrade

Reference no: EM13182789

Cash flow estimates for a process upgrade are as follows: first cost of $40,000, annual cost of $6,000 per year, market value that decreases by $2,000 per year to the salvage value of $20,000 after the expected life of 10 years. Calculate the annual worth of this upgrade using an interest rate of 14% per year and a study period of four years. _______

Reference no: EM13182789

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Calculate the annual worth of the upgrade : Cash flow estimates for a process upgrade are as follows: first cost of $40,000, annual cost of $6,000 per year, market value that decreases by $2,000 per year to the salvage value of $20,000 after the expected life of 10 years. Calculate the annu..

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