Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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![6. A construction firm can achieve a $15,000 cost
savings in Year-1 and increased by $2,000 each
year for the next 5 years by converting their diesel
engines for biodiesel fuel. At an interest rate of
15%, what is the equivalent annual worth (A) of the
savings? [4]](https://content.bartleby.com/qna-images/question/ebd57753-77a2-4d5e-8b8e-ab91d7ce9926/69c9d0d3-e8cc-4c17-b315-8e861c3661b3/6ppncjk_processed.jpeg)
Transcribed Image Text:6. A construction firm can achieve a $15,000 cost
savings in Year-1 and increased by $2,000 each
year for the next 5 years by converting their diesel
engines for biodiesel fuel. At an interest rate of
15%, what is the equivalent annual worth (A) of the
savings? [4]
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