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A firm wants to lease some land from you for 20 years and build a warehouse on it. As your payment for the lease, you will own the warehouse at the end of the 20 years. If the salvage value is estimated to be worth $20,000 then, what is the PW (Present Worth) assuming a MARR of 10%?

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Solution Summary

The expert determines if the salvage value is estimated to be work $20,000, the present worth is determined.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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