What is the net present worth using an interest rate of 8.5% over 8 years from operating equipment that upfront costs 40,000, a salvage value of 4,000 at the end of the 4-year useful life assuming repeatability with the revenues and cost values given below?
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
Revenue | 16,000 | 21,000 | 21,000 | 24,000 | 22,000 | 20,000 | 15,500 | 10,500 |
Operating Cost | 4,500 | 5,500 | 6,000 | 7,200 | 4,500 | 5,500 | 6,000 | 7,200 |
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