Mathematics

12 May, 21:27

I have 100,000.00 for a new business. I purchased a piece of equipment for 100,000. The expected useful life is 5 years and salvage value is 20,000. I rented the machine for 25,000 a year for 5 years. operating costs annually are 6,000. At the end of the fifth year I sold equipment for 22,000.00 instead of 20,000.00. How is this calculated?

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