Question: ABC construction Inc. is considering whether to purchase a Caterpillar backhoe or not. The cost of the backhoe is $43,019, the annual net benefit

ABC construction Inc. is considering whether to purchase a Caterpillar backhoe or

ABC construction Inc. is considering whether to purchase a Caterpillar backhoe or not. The cost of the backhoe is $43,019, the annual net benefit is $3,301, the company can sell the backhoe for $24,608 after 8 years. Given the company's MARR is 5%, what is the NPV of the backhoe? 5% Compound Interest Factors Single Payment Uniform Payment Series Arithmetic Gradient. Compound Present Sinking Capital Compound Present Gradient Gradient Amount Worth Fund Recovery Amount Worth Uniform Present Factor Factor Factor Factor Factor Factor Series Worth Find F Find P Find A Find A Find F Find P Find A Find P Given P Given F Given F Given P Given A Given A Given G Given G F/P P/F A/F A/P F/A P/A A/G P/G 1 1.050 9524 1.0000 1.0500 1.000 0.952 0 0 1 2 1.102 9070 4878 5378 2.050 1.859 0.488 0.907 3 1.158 8638 3172 3672 3.152 2.723 0.967 2635 3 4 1.216 8227 2320 2820 4310 3.546 1.439 5.103 4 5 1.276 7835 1810 2310 5.526 4.329 1.902 8.237 5 6 1.340 7462 1470 1970 6.802 5.076 2.358 11.968 6 7 1.407 7107 1228 1728 8.142 5.786 2.805 16.232 7 8 1.477 6768 1047 1547 9.549 6.463 3.244 20.970 8 9 1.551 6446 0907 1407 11.027 7.108 3.676 26.127 9 10 1.629 6139 0795 1295 12.578 7.722 4.099 31.652 10 11 1.710 5847 .0704 1204 14.207 8.306 4.514 37,499 11 12 1.796 5568 .0628 1128 15.917 8.863 4.922 43.624 12 DELE LIKE 17712 0104 $331 JO ONE

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!