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In: Economics

DT is evaluating an alternative for a new piece of equipment. They estimate the new equipment...

DT is evaluating an alternative for a new piece of equipment. They estimate the new equipment will cost $164,000, last 4 years, and have a maintenance and operation cost of $55,000 per year with no salvage value. Using a MARR of 22% per year, what is the present worth?

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Expert Solution

Present worth = -164000 – 55000(P/A, 22%, 4)

= -164000 – 55000*2.49364

= -301,150

Hence the present worth is -301,150

Rahul Sunny answered 2 years ago
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