Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 38

A manufacturer of off-road vehicles is considering the purchase of dual-axis inclinometers for installation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the regular cost of $142. If the purchaser gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit The company would pay the regular price, if purchased in 2 years. Assume the interest rate is 10% per year.