(Ch8) Jane Greene, a soil mechanics engineer is considering the purchase
(Ch8) Jane Greene, a soil mechanics engineer is considering the purchase of a testing
machine for her consulting office. The testing machine will cost $2000 and have a resale
value of $400 at the end of its 5-year-life. Having the machine in the office will reduce testing
costs by $1000 a year. Testing machine maintenance will be $300/ year. Compute the two
present worth indexes of this investment if the interest rate is 6%?
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