The information of an asset is given below. If the asset will be needed for 6 years, what would the salvage value of the end of 6 years have to be, for the annual worth to be the same as it is for one life cycle of the asset? Use an interest rate of 10% per year. Assest Information
First Cost $ -18,000 -18,000
Annual Cost/ year -11,000 -11,000
Salvage value 4000 ?
Life, years 4 6