please help with the excel calculation its been my 6 th attmpt but i am not able to find the same answers which is been given by experts when i calculate it on excel. kindly help here 1.Economic life of the machine is 1 year for both rates. The 3 AE(15) for the machine is:a. $8610b. $7383IC. $8983d. $8974 7.1A special purpose machine is to be purchased at a cost of $15,000. The followingtable shows the expected annual operating and maintenance cost and the salvagevalues for each year of service.Year ofService722345O&MCosts$2,5003,2005,3006,5007,800MarketValue$12,0008,1005,2003,5000a) If the interest rate is 10%, what is the economic service life for this machine?b) Repeat (a) above using i-15%.I

(According to Bartleby Guidelines we are only allowed to answer one question at a time, it is kindly…

Answered: a) If the interest rate is 10%, what is…

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Economics

a) If the interest rate is 10%, what is the economic service life for this machine? b) Repeat (a) above using i=15%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

please help with the excel calculation its been my 6 th attmpt but i am not able to find the same answers which is been given by experts when i calculate it on excel. kindly help here

1.
Economic life of the machine is 1 year for both rates. The 3 AE(15) for the machine is:
a. $8610
b. $7383
I
C. $8983
d. $8974

7.1
A special purpose machine is to be purchased at a cost of $15,000. The following
table shows the expected annual operating and maintenance cost and the salvage
values for each year of service.
Year of
Service
72
2
3
4
5
O&M
Costs
$2,500
3,200
5,300
6,500
7,800
Market
Value
$12,000
8,100
5,200
3,500
0
a) If the interest rate is 10%, what is the economic service life for this machine?
b) Repeat (a) above using i-15%.
I

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Step 2: Part (a) Determine the economic service life for this machine at interest rate 10%.

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