Discrete Compounding; /- 11% Single Payment Uniform Series ues at t The an before- Compound Amount EUAC Present Compound Amount Sinking Capital this info Present Factor To Find F Given P Worth Factor Factor Worth Factor Fund Factor Recovery plan to r Factor To Find P To Find F To Find P To Find A To Find A Given F Given A Given A Given F Given P 21234567815 N F/P P/F per year F/A P/A A/F A/P 1.1100 0.9009 1.0000 0.9009 1.0000 1.1100 1.2321 0.8116 2.1100 1.7125 0.4739 0.5839 1.3676 0.7312 3.3421 2.4437 0.2992 0.4092 1.5181 0.6587 4.7097 3.1024 0.2123 0.3223 1.6851 0.5935 6.2278 3.6959 0.1606 0.2706 1.8704 0.5346 7.9129 4.2305 0.1264 0.2364 2.0762 0.4817 9.7833 4.7122 0.1022 02122 2.3045 0.4339 11.8594 5.1461 0.0843 0.1943 2.5580 0.3909 14.1640 5.5370 0.0706 0.1806 10 2.8394 0.3522 16.7220 5.8892 0.0598 0,1698
Discrete Compounding; /- 11% Single Payment Uniform Series ues at t The an before- Compound Amount EUAC Present Compound Amount Sinking Capital this info Present Factor To Find F Given P Worth Factor Factor Worth Factor Fund Factor Recovery plan to r Factor To Find P To Find F To Find P To Find A To Find A Given F Given A Given A Given F Given P 21234567815 N F/P P/F per year F/A P/A A/F A/P 1.1100 0.9009 1.0000 0.9009 1.0000 1.1100 1.2321 0.8116 2.1100 1.7125 0.4739 0.5839 1.3676 0.7312 3.3421 2.4437 0.2992 0.4092 1.5181 0.6587 4.7097 3.1024 0.2123 0.3223 1.6851 0.5935 6.2278 3.6959 0.1606 0.2706 1.8704 0.5346 7.9129 4.2305 0.1264 0.2364 2.0762 0.4817 9.7833 4.7122 0.1022 02122 2.3045 0.4339 11.8594 5.1461 0.0843 0.1943 2.5580 0.3909 14.1640 5.5370 0.0706 0.1806 10 2.8394 0.3522 16.7220 5.8892 0.0598 0,1698
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
Related questions
Question
A present asset (defender) has a current market value of $81,000 (year 0 dollars). Estimated market values at the end of the next three years, expressed in year 0 dollars, are MV,$72,000, MV2 = $62,000, MV3=$44,000. The annual expenses (expressed in year 0 dollars) are $14,000 and are expected to increase at 4.6% per year. The before-tax nominal MARR is 11% per year. The best challenger has an economic life of 5 years and its associated EUAC is $31,959. Market values are expected to increase at the rate of inflation which is 3% per year. Based on this information and a before-tax analysis, what are the marginal costs of the defender each year and when should you plan to replace the defender with the challenger?
Click the icon to view the interest and annuity table for discrete compounding when MARR=11% per year
Fill the fable below (Round to the nearest dollar)
Year
1
Marginal Costs of the Defender $_____
EUAC through Year k $_____
EUAC through Year k
Transcribed Image Text:Discrete Compounding; /- 11%
Single Payment
Uniform Series
ues at t
The an
before-
Compound
Amount
EUAC
Present
Compound
Amount
Sinking
Capital
this info
Present
Factor
To Find F
Given P
Worth Factor
Factor
Worth Factor
Fund
Factor
Recovery
plan to r
Factor
To Find P
To Find F
To Find P
To Find A
To Find A
Given F
Given A
Given A
Given F
Given P
21234567815
N
F/P
P/F
per year
F/A
P/A
A/F
A/P
1.1100
0.9009
1.0000
0.9009
1.0000
1.1100
1.2321
0.8116
2.1100
1.7125
0.4739
0.5839
1.3676
0.7312
3.3421
2.4437
0.2992
0.4092
1.5181
0.6587
4.7097
3.1024
0.2123
0.3223
1.6851
0.5935
6.2278
3.6959
0.1606
0.2706
1.8704
0.5346
7.9129
4.2305
0.1264
0.2364
2.0762
0.4817
9.7833
4.7122
0.1022
02122
2.3045
0.4339
11.8594
5.1461
0.0843
0.1943
2.5580
0.3909
14.1640
5.5370
0.0706
0.1806
10
2.8394
0.3522
16.7220
5.8892
0.0598
0,1698
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