-; A company buys equipment for $30000. Annual net savings is 1000 per year for 8 years. The equipment is sold for a salvage value of $40,000 at end of 8 years. The company wants 8% return on any investment they make. Is this a good investment for 4) 1 them? Use the Annual Worth method.

-; A company buys equipment for $30000. Annual net savings is 1000 per year for 8 years. The equipment is sold for a salvage value of $40,000 at end of 8 years. The company wants 8% return on any investment they make. Is this a good investment for 4) 1 them? Use the Annual Worth method.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A company buys equipment for $30000. Annual net savings is 1000 per year
for 8 years. The equipment is sold for a salvage value of $40,000 at end of 8 years. The
company wants 8% return on any investment they make. Is this a good investment for
4)
them? Use the Annual Worth method.

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