A small metal plating company wants to become involved in electronic commerce. A modest e-commerce package is available for $20,000. Semiannual updates and site maintenance will cost $300. The salvage value of the package is estimated to be $1500 after 3 years. If the company wants to recover its total cost in 3 years, what is the equivalent semiannual amount of new income that must be realized at an interest rate of 5% per 6-month period?

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Q: A small metal plating company wants to become involved in electronic commerce. A modest e-commerce…

A:

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