A machine has the following cash flows for the last two years of service. The MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Calculate the EUAC of the machine if kept in service over the remaining two years O A. $49,600 OB. $24,929 OC. $37,500 O D. $27,500 O E. $22,100 b) Calculate the marginal cost of the machine for year 2. O A. $37,500 OB. $22,100 OC. $24,929 OD. $27,500 DE $49.600
A machine has the following cash flows for the last two years of service. The MARR is 10% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Calculate the EUAC of the machine if kept in service over the remaining two years O A. $49,600 OB. $24,929 OC. $37,500 O D. $27,500 O E. $22,100 b) Calculate the marginal cost of the machine for year 2. O A. $37,500 OB. $22,100 OC. $24,929 OD. $27,500 DE $49.600
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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
Transcribed Image Text:A machine has the following cash flows for the last two years of service. The MARR is 10% per year.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year.
Calculate the EUAC of the machine if kept in service over the remaining two years
O A. $49,600
O B. $24,929
O C. $37,500
O D. $27,500
O E. $22,100
(b) Calculate the marginal cost of the machine for year 2.
OA. $37,500
O B. $22,100
OC. $24,929
O D. $27,500
O E. $49,600
Year
0
1
2
Market Value
$45,000
31,000
24,000
(・・・
O&M Costs
$9,000
12,000
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