Question: X Reference Discrete Compounding; i = 14% Single Payment Uniform Series Compound Present Compound Present Sinking Amount Worth Amount Worth Fund Factor Factor Factor Factor




X Reference Discrete Compounding; i = 14% Single Payment Uniform Series Compound Present Compound Present Sinking Amount Worth Amount Worth Fund Factor Factor Factor Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F N F/P P/F F/A P/A A/F 1.1400 0.8772 1.0000 0.8772 1.0000 1.2996 0.7695 2.1400 1.6467 0.4673 1.4815 0.6750 3.4396 2.3216 0.2907 1.6890 0.5921 4.9211 2.9137 0.2032 1.9254 0.5194 6.6101 3.4331 SOONOURON- 0.1513 2.1950 0.4556 8.5355 3.8887 0.1172 2.5023 0.3996 10.7305 4.2883 0.0932 2.8526 0.3506 13.2328 4.6389 0.0756 3.2519 0.3075 16.0853 4.9464 0.0622 3.7072 0.2697 19.3373 5.2161 0.0517 Print DoneAn old forklift is due for a replacement analysis. It has a current market value $10,000. The market values and operation and maintenance costs for each of the remaining years of service are given below. The MARR is 14% per year. (a) Complete the table of marginal costs of the old forklift for each of the remaining years of service. (b) If the challenger has a minimum EUAC of $6,312, answer the two additional questions. Forklift (Defender Year MV at EOY 0&M Costs $6,000 $3,000 4,500 3,000 3,500 3,500 1,500 4,500 Click the icon to view the interest and annuity table for discrete compounding when MARR = 14% per year. Answers (a) Fill in the table below. (Round to the nearest dollar.) Year Marginal Cost $ A W N (b) Since Analysis Technique No 2 is applicable here (make sure you know why, Example 5 Module 10), which additional calculation is required before the replacement decision can be made? O A. The minimum EUAC of the defender over its remaining life O B. The minimum marginal cost of the challenger Then, the decision will be made to replace the defender if O A. The minimum marginal cost of the challenger is higher than the first year marginal cost of the defender O B. The minimum EUAC of the defender is higher than the minimum EUAC of the challenger O C. The minimum EUAC of the defender is lower than the minimum EUAC of the challenger
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
