What is the aw of the tractor

Reference no: EM13269037

A tractor costs $12,500 and will be used for five years when it is estimated to have salvage value of $4,000. Maintenance costs are estimated to be $100 the first year and increase by $100 each year thereafter. Income from the tractor is expected to be $3,000 the first year and increase by 4% each year. If MARR=12% what is the AW of the tractor?
$381
$106
$316
-$116

Reference no: EM13269037

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