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4. Tulsa Precision, Inc. borrows $100,000 to purchase a new numerically controlled milling machine and pays the loan back over a 4-year period with equal pay- ments. Interest on the loan is 15% compounded annually. The machine is esti- mated to have annual operating and maintenance costs of $24,000/year and have a life of 10 years. Salvage value is estimated to be $25,000. The firm has a MARR of 12%. Determine for this investment the following. (a) Present worth. (4.2.1) (b) Annual worth. (4.2.2) (c) Future worth. (4.2.3)

4. Tulsa Precision, Inc. borrows $100,000 to purchase a new numerically controlled milling machine and pays the loan back over a 4-year period with equal pay- ments. Interest on the loan is 15% compounded annually. The machine is esti- mated to have annual operating and maintenance costs of $24,000/year and have a life of 10 years. Salvage value is estimated to be $25,000. The firm has a MARR of 12%. Determine for this investment the following. (a) Present worth. (4.2.1) (b) Annual worth. (4.2.2) (c) Future worth. (4.2.3)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. Tulsa Precision, Inc. borrows $100,000 to purchase a new numerically controlled milling machine and pays the loan back over a 4-year period with equal pay- ments. Interest on the loan is 15% compounded annually. The machine is esti- mated to have annual operating and maintenance costs of $24,000/year and have a life of 10 years. Salvage value is estimated to be $25,000. The firm has a MARR of 12%. Determine for this investment the following. (a) Present worth. (4.2.1) (b) Annual worth. (4.2.2) (c) Future worth. (4.2.3)
Transcribed Image Text:4. Tulsa Precision, Inc. borrows $100,000 to purchase a new numerically controlled milling machine and pays the loan back over a 4-year period with equal pay- ments. Interest on the loan is 15% compounded annually. The machine is esti- mated to have annual operating and maintenance costs of $24,000/year and have a life of 10 years. Salvage value is estimated to be $25,000. The firm has a MARR of 12%. Determine for this investment the following. (a) Present worth. (4.2.1) (b) Annual worth. (4.2.2) (c) Future worth. (4.2.3)
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