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Compute the annual equivalent cost in year

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Reference no: EM132600326

Question - The University has just invested $ 8,968 in a new desktop publishing system. From past experience, annual cash returns are estimated as

A(t) = $8000 - $4000(1+0.15)t-1

S(t) = $6000(1 - 0.9 )t

where 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 equation 1

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

Reference no: EM132600326

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