Numerical Problems
6.14 The initial cost of a new photocopier is $12,000. It is expected to generate a net
annual income of $4,000 in the first year, decreasing annually by $300. At the
end of its 5-year useful life, the photocopier is expected to be sold for $500.
Assuming $i = 10\%$ per year with annual compounding, determine the photo-
copier's present worth.