9-15. A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life (see Table P9-15, p. 439). The firm's MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 Annual revenues less expenses Abandonment value of machine" a Estimated MV. 1 $2,000 $6,200 End of Year 4 2 3 $2,000 $2,000 $2,000 $5,200 $4,000 $2,200 5 $2,000 0
9-15. A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life (see Table P9-15, p. 439). The firm's MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 Annual revenues less expenses Abandonment value of machine" a Estimated MV. 1 $2,000 $6,200 End of Year 4 2 3 $2,000 $2,000 $2,000 $5,200 $4,000 $2,200 5 $2,000 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please don’t use excel. Please provide equations used.
Transcribed Image Text:9-15. A small high-speed commercial centrifuge has the
following net cash flows and abandonment values over
its useful life (see Table P9-15, p. 439).
The firm's MARR is 10% per year. Determine the
optimal time for the centrifuge to be abandoned if its
current MV is $7,500 and it won't be used for more than
five years. (9.8)
TABLE P9-15 Cash Flows and Abandonment Values for
Problem 9-15
Annual revenues less expenses
Abandonment value of machine"
a Estimated MV.
End of Year
1
2 3
4
$2,000 $2,000 $2,000 $2,000
$6,200 $5,200 $4,000 $2,200
5
$2,000
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education