Determine present worth of costa for purchasing the analyzer

Reference no: EM13307519

the question states a lab purchased a computer analyzer for $35,000. The lab also purchased a 5 yr maintanence contract for $3000 a year, payable at the end of each year. At the end of the first 5 years, the company upgraded the analyzer at a cost of $10,000. Following the upgrade the lab purchased another 5 year maintanence contract for $1000 a year, payable at the end of each year. Determine the present worth of the costa for purchasing the analyzer, upgrading the analyzer, and purchasing the two 5 year contracts, based on an annual interest rate of 12% compounded annualy.

Reference no: EM13307519

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