How much would the owner of a building be justified in paying for a sprinkler system...
How much would the owner of a building be justified in paying for a sprinkler system that will save $1000 a year in insurance premiums if the system has to be replaced every 15 years and has a salvage value equal to 10% of its initial cost? Assume money is worth 5%. Use excel.
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How much would the owner of a building be justified in paying
for a sprinkler system...
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Question 1 RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $25,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year. It is anticipated that the sprinkler system would be used for 9 years and then sold for a salvage value or nsoo. Annual operating and maintenance expenses for the system over the 9-year life are estimated to be s8,500 per year. If the...
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how would you do question 8
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