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# Practice problem Seven years ago a New Brunswick logging company purchased a used wood chipper for \$170,600 for biomass and custom chipping....

Practice problem

Seven years ago a New Brunswick logging company purchased a used wood chipper for \$170,600 for biomass and custom chipping. Operating and maintenance costs averaged \$3,900 per year. A complete overhaul at the end of year 4 cost additional \$11,000. Annual revenue from using the chipper was \$38,000 per year. Calculate the annual worth of the chipper at 7% interest rate

Chipper purchases: \$170,600 Operating and maintenance costs averaged \$3,900 per year The end of year 4 cost additional... View the full answer

In order to find the annual worth of the cheaper first you have to find the NPV Net Present Value where the formula to find... View the full answer

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