Determine the maximum amount the company willing to pay

Reference no: EM131958015

Question: A company is considering the purchase of a system that will reduce annual operating costs by $10,000 per year for the next 15 years. If the interest rate is 6% per year, using an future worth approach determine the maximum amount the company should be willing to pay for the system. Assume Salvage Value is 2000. (Single Alternative with Future Worth).

Reference no: EM131958015

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