Manufacturing plant purchases equipment

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Reference no: EM131387114

A manufacturing plant purchases equipment for 5100,000 which it intends to sell after 10 years for $20,000 salvage. The maintenance costs are estimated to be $2,000 the first year and increase by $500 each year thereafter. Using a nominal rate of 7%, find the present worth (i.e. present value) of the project.

Reference no: EM131387114

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