Question: Given the following data, calculate the present worth of the investment. First cost = $60,000 Project life = 10 years Salvage value = $15,000 MARR

Given the following data, calculate the present worth of the investment. First cost = $60,000 Project life = 10 years Salvage value = $15,000 MARR = 25% General price inflation=4% per year Annual cost 1 = $4500 in Year 1 and. inflating at 2.5% per year Annual cost 2 =$7000 in Year 1 and inflating at 10.0% per year Annual cost 3 = $10,000 in Year 1 and inflating at 6.5% per year Annual cost 4 = $8500 in Year 1 and inflating at -2.5% per year

Step by Step Solution

★★★★★

3.29 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Year Cost 1 Cost 2 Cost 3 Cost 4 TOTAL PW TOTAL 1 4500 7000 10000 8500 30000 24000 2 4613 770... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

7-B-E-M (457).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Given the following data for Alberts fabricating production area: Fixed costs for one shift .......= $60,000 Unit variable cost ............= $7 Selling price ....................= $12 Number of...

Given the following data set: 8, 7, 1, 4, 6, 6, 4, 5, 7, 6, 3, 0 a. Find the five-number summary and the IQR. b. Calculate and s. c. Calculate the z-score for the smallest and largest observations....

Given the following data set: 2.3, 1.0, 2.1, 6.5, 2.8, 8.8, 1.7, 2.9, 4.4, 5.1, 2.0 a. Find the positions of the lower and upper quartiles. b. Sort the data from smallest to largest and find the...

Given the following data, calculate the present worth of the investment. First cost = $60,000 Project life = 10 years Salvage value = $15,000 MARR= 25% General price inflation = 4% per year...

14-71 Given the following data, calculate the present worth of the investment. First cost$60,000 Project life- 10 years Salvage value--$15,000 MARR-25% General price inflation 4% per year Annual cost...

Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) $ 780, 000 Useful life 10...

The company plans to acquire a new production line for 3D printers. As a project appraiser, you are asked to determine if the project should be accepted in real terms, using the NPV criterion, based...

A car manufacturer is contemplating the replacement of an old semi-automatic production line with a newer more efficient model; The first alternative is a fully automated production line system which...

Explain how translating a foreign balance sheet for inclusion in a multinationals domestic balance sheet can violate the accounting identity.

Discuss the ethics of union busting, wherein employers who do not wish to have unions hire specialized firms to resist such efforts, up to and including using physical force to intimidate employees...

Write a complete C + + function that does the following: Prompts the user for a positive integer greater than or equal to 3 . Force the user to enter a valid input. Write a recursive function called...

0 2 0 -5 3 2 4 2 1 2 2 0 Task 2. (15%) Calculate the determinant of A: 1 1 (a) Using cofactor expansion along the 4th column; (b) Using cofactor expansion along the 2nd row. Note: Do not use Sarrus...

1. Find the absolute maximum and minimum values of 4.xy x4 y4 + 16 on the triangular region bounded below f(x, y) by the line y = -2 above by the line y = x and on the right by the line x = 2. -

2. As shown below, An infinitely long conducting wire lying along z-axis and a rectangular loop of conducting wire at a distance "d" from the z axis form a coupling system. The permeability of the...

3 2 Task 1. (20%) Let A = 2 be a symmetric real matrix. (a) Find eigenvalues and corresponding eigenvectors of A; (b) Determine whether the eigenvectors are orthogonal to each other, or not. If not,...

1. Task 3. (15%) Let, vi = and v3 = 2 (a) Show that whether the vectors are linearly dependent or not; (b) Show that R = span {} (c) Show whether the vector set v = constitutes a basis for R or not.

What other contingency plans do you think Australias diving and surfing schools need to make in order to survive the consequences of the increasing incidences of fatal shark attacks?

A firm is considering the following alternatives, as well as a fifth choice: do nothing. Each alternative has a 5-year useful life. The firm's minimum attractive rate of return is 8%. Which...

Find the best alternative using incremental IRR analysis. A B D Initial cost $2000 4000 5000 3000 Annual benefit 800 1300 500 400 Salvage value 1400 2000 1500 3000 Life, in years 6 4 MARR required 6%...

Our cat Fred's summer kitty-cottage needs a new roof. He's considering the following two proposals and feels a 15-year analysis period is in line with his remaining lives. Which roof should he choose...

Looking for excel formulas please. Masters Machine Shop is considering a four - year project to improve its production efficiency. Buying a new machine press for $ 7 9 6 , 8 0 0 is estimated to...

The following are the prices in the foreign exchange market between the U.S. dollar and a foreign currency (fc) Spot 0.6335 US\$/fc; three-month forwaro 0.6375S$/fc. What was the discount or premium...

Bellwood Corp. is comparing two different capital structures. Plan I would result in 32,000 shares of stock and $94,500 in debt. Plan II would result in 26,000 shares of stock and $283,500 in debt....