The initial cost of the equipment

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Your company is considering the purchase of some CADD equipment. The initial cost of the equipment will be $152,000 and it will have a six year useful economic life. It is estimated that this equipment will save your company $53,000 per year, with a resale value of $21,000 at the end of its life. Use the annual worth method to determine if the equipment should be purchased at an interest rate of 12%?

Reference no: EM13796707

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