A contractor estimates purchase of a new bulldozer will increase earnings $20,000 per year for each of the next 10 years. During this same time the estimated increase in expense is $2000 per year. If...


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A contractor estimates purchase of a new bulldozer will increase earnings $20,000 per year for each<br>of the next 10 years. During this same time the estimated increase in expense is $2000 per year. If<br>an annual interest of 10% is used and a salvage value of $100,000 is assumed at the end of Year 10,<br>what amount could be spent now on the bulldozer?<br>Note the description above asks for the determination of a Present Worth.<br>

Extracted text: A contractor estimates purchase of a new bulldozer will increase earnings $20,000 per year for each of the next 10 years. During this same time the estimated increase in expense is $2000 per year. If an annual interest of 10% is used and a salvage value of $100,000 is assumed at the end of Year 10, what amount could be spent now on the bulldozer? Note the description above asks for the determination of a Present Worth.

Jun 04, 2022
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