Question: hi can you please answer part C & D showing all formulas (not excel formula) The initial cost of an air cleaning, and ventilating equipment

hi can you please answer part C & D showing all formulas (not excel formula)

hi can you please answer part C & D showing all formulas

The initial cost of an air cleaning, and ventilating equipment for a nickel mine located in Sudbury, Ont. is SX. The estimated yearly operating and maintenance (O&M) costs of this equipment for its five years life are given below: End of year O&M costs,$ 2 800,0001, 4 1,800,0002,850,000 300,000 1,300,000 MARR (the minimum attractive rate of return) for your company is 10%. The salvage value of the equipment (at any time) is zero. Determine (a) the present value of all costs of this equipment for its five year life, (b) the equivalent uniform annual cost of this equipment if it is needed (c) the economic life of the equipment if X-4,000,000 if X-8,000,000 (4 marks) and used for 3 years only, and X-6,500,000 (4 marks) (12 marks) (5 marks) (d) the value of X that would make the economic life of the equipment 5 years

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!