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What is present worth for entire

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A new piece of equipment has a first cost of $25,000 and will allow company to generate annual revenues of $7,000 at the end of each year. The equipment lasts 4 years and does not have any salvage value. The project will be repeated at the end of 4 years, 8 years, and 12 years. What is the present worth for the entire 16 years of service if the interest rate is 8%?

Reference no: EM133268524

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