What is the annual worth of this equipment

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New equipment will cost $200,000 and a salvage value of $50,000 at the end of the project. The net cash is estimate to be of $40,000 the first year and increase by 5% each year during the 7 year life of the project. The MARR is 20% per year compounded annually. What is the annual worth of this equipment?

Reference no: EM131989754

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