Question: A machine is under consideration for a new manufacturing process. The interest rate is 10% compounded semianually. Compute the future worth of this alternative. First
A machine is under consideration for a new manufacturing process. The interest rate is 10% compounded semianually. Compute the future worth of this alternative.
First cost = 70,000
Semiannual cost = 6,000
Semiannual income = 18,000
Salvage value = 9,000
Life in years = 5
a. 45,911.80
b. 273,957.80
c. -255,958
d. 36,911.80
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