Solution-Compute the annual equivalent cost in year 2

Compute the annual equivalent cost in year 2

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The University has just invested $9,443 in a new desktop publishing system. From past experience, annual cash returns are estimated as A(t) = $8000 - $4000(1+0.15)^t-1S(t) = $6000(1 - 0.5)^twhere A(t) stands for the net cash flow in period t and S(t) stands for the salvage value at the end of year t, and t 1

If the MARR is 12%, compute the annual equivalent cost in year 2.

Reference no: EM132361636

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Compute the annual equivalent cost in year 2

Reference no: EM132361636

Reference no: EM132361636

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