Assume a tread mill will cost $1,200 and, over the next 5 years, yield services valued at $1,000 annually. The treadmill will cost $300 annually for power and maintenance. At the end of the 5 years, the treadmill can be sold for $75. If the current interest rate on savings that the consumer will use is 4%, what is the net present value of the treadmill?

0 votes
     $1,991
      $3,191
      $4,391
      $1,978
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
$1,978
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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