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Given a project alternatives below, what is the Net Future Worth of Equipment A at the end of 5 years assuming an interest rate of 5%?

Given a project alternatives below, what is the Net Future Worth of Equipment A at the end of 5 years assuming an interest rate of 5%?  Enter your answer rounded to the nearest $100 using the format: $XXXX   (i.e. $730.17 would be entered as $0700)

Show your work on your worksheet.

Equipment A
Initial Cost $12000
Annual Savings $3000
Salvage Value $2000
Lifetime

5 years

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Solution.xlsx

Year
Initial cost
Annual savings
Salvage value
Net CF
FV
Net future worth
Answer 0
-12000 1 2 3 4 5 3000 3000 3000 3000 -12000
3000
3000
-15315.38 3646.519 3472.875
3261.515 3000
3307.5 3000
3150...

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