Find the present value of an investment in plant

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Problem 1: Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $71500 for 15 years and to have a resale value of $131500 at the end of that period. Assume a 10% rate and earnings at year end. The present value of 1 at 10% for 15 periods is 0.23939. The present value of an ordinary annuity at 10% for 15 periods is 7.60608. The future value of 1 at 10% for 15 periods is 4.17725.

Option 1: $543835

Option 2: $575315

Option 3: $679638

Option 4: $1102666

Reference no: EM132708854

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