A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its...

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A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life. The firm's MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,000 and it won't be used for more than five years. End of Year 2 3 Annual revenues less expenses $2,100 $2,100 $2,100 Abandonment value of machine $6,300 5,100 $4,100 $2,100 $2,400 5 $2,100 0 Estimated MV. Click the icon to view the interest and annuity table for discrete compounding when MARR = 10% per year. The centrifuge should be retained for year(s) before abandonment. (Round to the nearest whole number. Type 0 if the centrifuge should be abandoned immediately.) More Info N 1 068AWN 4 5 8 9 10 11 12 13 14 15 Single Payment Compound Amount Present Factor Worth Factor To Find F Given P F/P 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 Discrete Compounaing; 1– 10% 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 To Find P Given F P/F 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 Compound Amount Factor To Find F Given A FIA 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 Uniform Series Present Worth Factor To Find P Given A P/A 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 Capital Recovery Factor To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 X A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life. The firm's MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,000 and it won't be used for more than five years. End of Year 2 3 Annual revenues less expenses $2,100 $2,100 $2,100 Abandonment value of machine $6,300 5,100 $4,100 $2,100 $2,400 5 $2,100 0 Estimated MV. Click the icon to view the interest and annuity table for discrete compounding when MARR = 10% per year. The centrifuge should be retained for year(s) before abandonment. (Round to the nearest whole number. Type 0 if the centrifuge should be abandoned immediately.) More Info N 1 068AWN 4 5 8 9 10 11 12 13 14 15 Single Payment Compound Amount Present Factor Worth Factor To Find F Given P F/P 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 Discrete Compounaing; 1– 10% 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 To Find P Given F P/F 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 Compound Amount Factor To Find F Given A FIA 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 Uniform Series Present Worth Factor To Find P Given A P/A 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 Capital Recovery Factor To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 X

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To solve this problem we need to determine the optimal time to abandon the centrifuge by comparing i... View the full answer