Present worth of the machine if its life was replicated

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Reference no: EM131067083

Machine C has an initial cost of $40,000, maintenance costs of $5,000 per year and a salvage value of $12,000 after its 3-year useful life. Assuming an interest rate of 10% per year, which of the following would be closest to the present worth of the machine if its life was replicated to a total of 7 years?

a) $-43000

b) $-88100

c) $-74000

d) $-116000

Reference no: EM131067083

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