Determine the pw index at a given interest rate

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Reference no: EM132171271

Question: What is the breakeven annual benefit for ABC's new machine?

Problem: ABC Block Co. may buy a new machine that has a first cost of $10K. It will produce benefits for each of the next 6 years of $3000 while requiring $1400 to operate. ABC uses a PW index that is calculated by dividing the PW of benefits by the PW of costs. Determine the PW index at 8%.

Reference no: EM132171271

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