factor V^(1/2)=(1+i)^(-1/2)

Year 1 1500 2 1600 3 1800 2100 5 2500 6 2900 7 3400 8 4000 geeee Cost of operation Rescue Value 3500 2500 1700 800 800 600 500 500 Cost charges are assumed to occur in the middle of the year and are discounted from the | beginning of the year, so they must be multiplied by a factor V'/2 = (1 + i)-1/2, We want to find the optimal replacement period. Use 12% annual interest and a new machine value of $5,000.00 Year 1 1500 2 1600 3 1800 2100 5 2500 6 2900 7 3400 8 4000 geeee Cost of operation Rescue Value 3500 2500 1700 800 800 600 500 500 Cost charges are assumed to occur in the middle of the year and are discounted from the | beginning of the year, so they must be multiplied by a factor V'/2 = (1 + i)-1/2, We want to find the optimal replacement period. Use 12% annual interest and a new machine value of $5,000.00