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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ff737fb-d689-45a6-8f07-a69ed38e9e58%2F07c37caa-bb2f-40e9-b872-22b9165e500e%2Fcup7l7c_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ff737fb-d689-45a6-8f07-a69ed38e9e58%2F07c37caa-bb2f-40e9-b872-22b9165e500e%2Fav7vko_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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