Determine the present worth at an interest rate

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Reference no: EM131807424

The Burger Barn is evaluating the Quick Fry French fryer, which has an initial cost of $6000. The new equipment will allow Burger Barn to save on costs and, hopefully, sell more fries. The annual expected net income increase is $1380. The machine has a salvage value of $250 at the end of its 5-year useful life. Determine the present worth at an interest rate of 5%.

Reference no: EM131807424

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