Investment in a crane (äl) is expected to produce profit from its rental of $15,000 the first year it is in service. The profit is expected to decrease by $2,500 each year thereafter. At the end of six years assume the salvage value is zero. At 15% interest rate calculate the future worth of the profits and determine if this is a good investment or not? O -$77,661 Not good investment O $51,400 O -$36,925 O $39,350 O Good investment O $85,411

Investment in a crane (äl) is expected to produce profit from its rental of $15,000 the first year it is in service. The profit is expected to decrease by $2,500 each year thereafter. At the end of six years assume the salvage value is zero. At 15% interest rate calculate the future worth of the profits and determine if this is a good investment or not? O -$77,661 Not good investment O $51,400 O -$36,925 O $39,350 O Good investment O $85,411

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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