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Find the present value of investment in plant and equipment

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Question - Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $60500 for 15 years and to have a resale value of $120500 at the end of that period. Assume a 9% rate and earnings at year end. The present value of 1 at 9% for 15 periods is 0.27454. The present value of an ordinary annuity at 9% for 15 periods is 8.06069. The future value of 1 at 9% for 15 periods is 3.64248.

Reference no: EM133036670

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