Calculate the future value at eoy3 for option

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The New England Soap Company is considering adding some processing equipment to the plant to aid in the removal of impurities from some raw materials. By adding the processing equipment, the firm can purchase lower-grade raw material at reduced cost and upgrade it for use in its products. Two types of equipment are being considered and their costs/revenues are shown below:

The process equipment will run for 3 years. With a MARR of 8%

Calculate the Future Value at EOY3 for each option:

Year 0 equipment A (32000) Equipment B (27500)

Year 3 equipment A 19000 equipment B 15000

Reference no: EM132543321

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