An equipment that can be bought for $100, 000 is to be used in a manufacturing process. It is estimated to have a service life of 5 years and a 10% salvage value at the end of its service life....

Extracted text: An equipment that can be bought for $100, 000 is to be used in a manufacturing process. It is estimated to have a service life of 5 years and a 10% salvage value at the end of its service life. Estimates of revenue possible for using this equipment are the following Estimate 1 Estimate 2 Estimates 3 Revenue is initially at 20,000 increasing at 2,000 per year If the before-tax MARR is 10% per year, use PW to determine at which of these different Revenue is initially at 21,000 increasing at a rate of 5% per year Revenue is constant at 23,000 estimates will make the decision to purchase the equipment.