Question 5: Estimates for one of two process upgrades are: first cost of $40,000; annual costs...

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Question 5: Estimates for one of two process upgrades are: first cost of $40,000; annual costs of $5000 per year; market value that decreases 5% per year to the salvage value of $20,000 after the expected life of 10 years. If a 4-year study period is used for AW analysis at 15% per year, determine the correct AW value is closest to $-12,602 Question 6: Determine the perpetual annual worth of investing $50,000 now and $20,000 per year starting in year 16 and continuing forever at 12% per year/ $9654 Question 7: You graduated with an MS degree in engineering and have a great job. Next month you start an automatic draft from your paycheck of $1000 each month, placing it into a mutual fund retirement account. You plan to continue at this rate for 20 years then stop making deposits. Assume a return of 6% per year compounded monthly is a good expectation for all years. If you retire 10 years after the last deposit and the first retirement benefit is withdrawn at the end of the first month of year 31, determine the equivalent monthly worth of each retirement payment to you and your heirs forever $4203 per month Question 5: Estimates for one of two process upgrades are: first cost of $40,000; annual costs of $5000 per year; market value that decreases 5% per year to the salvage value of $20,000 after the expected life of 10 years. If a 4-year study period is used for AW analysis at 15% per year, determine the correct AW value is closest to $-12,602 Question 6: Determine the perpetual annual worth of investing $50,000 now and $20,000 per year starting in year 16 and continuing forever at 12% per year/ $9654 Question 7: You graduated with an MS degree in engineering and have a great job. Next month you start an automatic draft from your paycheck of $1000 each month, placing it into a mutual fund retirement account. You plan to continue at this rate for 20 years then stop making deposits. Assume a return of 6% per year compounded monthly is a good expectation for all years. If you retire 10 years after the last deposit and the first retirement benefit is withdrawn at the end of the first month of year 31, determine the equivalent monthly worth of each retirement payment to you and your heirs forever $4203 per month

Answer rating: 100% (QA)

ANSWER Question 5 To determine the correct Present Worth AW value we need to calculate the present worth of the costs and salvage value and find the net present worth NPW Given First cost 40000 Annual ... View the full answer