Evaluate to total present worth of all the cash-flow of machine ABC for an interest rate of 10% per year. Relevant costs are as follows investment cost = $18,000 useful life = 20 years Market value = $5000 Annual operating expenses =$250 Overhead cost end of the 7th year = $500 Overhead cost end of the 14th year = $800

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Chapter1: Making Economics Decisions
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Evaluate to total present worth of all the cash-flow of machine ABC for an interest rate of 10% per year. Relevant costs are as follows

investment cost = $18,000

useful life = 20 years

Market value = $5000

Annual operating expenses =$250

Overhead cost end of the 7th year = $500

Overhead cost end of the 14th year = $800 

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