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The equivalent annual worth (eaw) is most nearly

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A product is expected to earn $25,000 at the end of the first year, and to decrease $500 each subsequentyear. This product is going to be in service five (5) year. The market value at the end of five years is $5,000. At an interest rate of return of 5% the equivalent annual worth (EAW) is most nearly:
a) EAW= $24,953.61
b) EAW= $14,048
c)EAW= $16,855.95

d)EAW= $14,953.60

Reference no: EM13666894

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