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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Please don’t use excel. Please provide equations used.
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
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
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Production and Cost
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
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)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
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-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education