Find interest rate that makes these two options equivalent

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Question: Find the interest rate that makes these two options equivalent with respect to present worth. A brand new machine that has a price of $1900 and will have a salvage value of $700 after 3 years. Secondly, An old machine that has a purchase price of $1200 which costs $250 to maintain with a salvage value of $250 after three years

Reference no: EM133365046

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