Is it a good investment assuming equivalent annual method

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New equipment is purchased for $ 40,000. It has a residual salvage value of at the end of the 10 years $ 2,500.00. Desired rate of return 12%. Operating expenses are expected to be $2000.00 the first year and increase by $500.00 each year during the life of the equipment. Is this is a good investment assuming equivalent annual methods?

Reference no: EM13159808

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