What is the present value of the investment

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Compute the present equivalent cost (present value) of a machine tool that costs $10,000. initially plus $500. for annual maintenance. The estimated life of the tool is 20 years, and its estimated salvage value at that time is $3000. The interest rate is 12.0%. ($13,424) If it is expected that the machine tool will produce $2500. annual income, what is the present value of the investment at 12.0%?

Reference no: EM132014623

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