Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate anneual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55.000 1 35,000 45.000 20,000 47.500 3 15,000 50.000 2.000 53.500
Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate anneual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55.000 1 35,000 45.000 20,000 47.500 3 15,000 50.000 2.000 53.500
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 5
Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2
M&O cost
Retention Yr. Market Value
per year
O First Cost) 55,000
1
35,000
45.000
2
20,000
47.500
3
15,000
50.000
4
2.000
53.500
O 6a256
O 69209
O R476
O 67.854
Question 6
Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3.
O 66.765
O 64332
O 67.428
O 66256
D
Question 7
Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine?
01
04](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68c1256a-a784-47b1-8979-3f9a545dc76f%2Fc66ba283-5b5a-49f0-808b-b2cc8de4152b%2F0ao3sd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 5
Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2
M&O cost
Retention Yr. Market Value
per year
O First Cost) 55,000
1
35,000
45.000
2
20,000
47.500
3
15,000
50.000
4
2.000
53.500
O 6a256
O 69209
O R476
O 67.854
Question 6
Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3.
O 66.765
O 64332
O 67.428
O 66256
D
Question 7
Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine?
01
04
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