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The owner of a business is considering investing $55,000 in new equipment. He estimates that the net cash flows (revenues) each year will be $5,000. The equipment is estimated to have a 10-year service life and a net salvage value at this time of $6,000. The firm's MARR value is 12%. Determine the annual capital cost (i.e., Annual Worth on a cost basis) for the equipment.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M966657

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