A used machine costs $22681 to purchase . It has an annual maintenance cost of $ 10000 , a salvage of $ 5000, and a 13 year life. If the interest rate is 3% per year , compounded annually, what is the present worth cost of the machine?

Q: A construction firm can achieve a $15,000 cost savings in Year 1 and increasing by $2000 each year…

A: (a) Savings 15,000 ( in Year 1 savings  increasing by $2000 for 5 years) Interest rate (i) 15%…

Q: Demarcus is planning to purchase a piece of property that he anticipates will cost $455,000 in 6…

A: Given, Future Value= $455000            Rate of interest= 7%            Time= 6 years

Q: When a child is born, the parents receive gifts of $5000 which they invest at 6% interest. Each year…

A: Formula for return= PA(1+r)^nn=time period in yearsPA=principal amountr=interest rates

Q: A new machine can be purchased today for $450,000. The annual revenue from the machine is calculated…

A: Net cash flow (NCF) is computed as follows. NCF, year 0 = - 450,000 (purchase price) NCF, years 1-9…

Q: John is evaluating his truck inventory. One three year old vehicle has a book value of $22 500.…

A: Purchase Price = 32000Current book value = 22500 Maintenance cost = 1100  per year Maintenance cost…

Q: A municipal waste treatment plant with state-of-the-art environmental technology and controls is…

A: Given, Installation Cost = $8 million Repair Cost (after 6 years) = $3 million Repair Cost (after 10…

Q: year 2, and increasing by $500 through year 10. At an interest rate of 10% per year, what is the…

A: A cash flow diagram is a visual representation of the inflows and outflows of cash over a particular…

Q: The City of San Antonio is considering various options for providing water in its 50-year plan,…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Benita deposits $125 per month into an account paying 6% interest for 2 years, to be used to…

A: The cost of the car will be the total amount accumulated in initial two years plus the next two…

Q: Annual thermal loss through the pipe lines of a factory is estimated to be $412 in terms of wasted…

A: A sum of money today is worth more than a sum of money in the future, according to the notion of…

Q: Maintenance cost for a small bridge with an expected 60-year life are estimated to be $1,000 each…

A: Equivalent annual cost (EAC) is the annual cost of purchasing, working, and keeping a resource over…

Q: value is $12,000. The annual insurance cost is 5% of the purchase price. The electricity co is $ 800…

A: Given, Purchasing price of an equipment = $100,000 Electricity cost = 800 each year Replacement part…

Q: 24. Determine the present worth of a maintenance contract that has a cost of $30000 in year 1 and…

A: In economics and finance, present worth, conjointly brought up as present discounted worth, is that…