A delivery car had a first cost of $32,000, an annual operating cost of $13,000, and an estimated $5500 salvage value after its 6- year life. Due to an economic slowdown, the carwill be retained for only 4 years and must be sold now as a used vehicle. At an interest rate of 15% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? Hint: What is the annual worth at that particular year, when the car is sold out?

A delivery car had a first cost of $32,000, an annual operating cost of $13,000, and an estimated $5500 salvage value after its 6- year life. Due to an economic slowdown, the carwill be retained for only 4 years and must be sold now as a used vehicle. At an interest rate of 15% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? Hint: What is the annual worth at that particular year, when the car is sold out?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hi expert bro Hand written solution is not allowed.
I need help only with the second part of inputting this data into excel calculating the Annual Worth for both options. Then using Goal Seek to find out the new salvage value that will equal AW equations, thank you.
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