Homework answers / question archive / Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $61500 for 15 years and to have a resale value of $121500 at the end of that period

Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $61500 for 15 years and to have a resale value of $121500 at the end of that period

Accounting

Share With

Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $61500 for 15 years and to have a resale value of $121500 at the end of that period. Assume a 12% rate and earnings at year end. The present value of 1 at 12% for 15 periods is 0.18270. The present value of an ordinary annuity at 12% for 15 periods is 6.81086. The future value of 1 at 12% for 15 periods is 5.47357.

1) $845360

2) $418868

3) $521045

4) $441066