fracturing cell in a lean Revenues are expec be $39,000 in year one creasing by $13,000 more each year thereafter. Relevant expenses will Your firm is thinking about investing $250,000 in $15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine. estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 9% per year?
fracturing cell in a lean Revenues are expec be $39,000 in year one creasing by $13,000 more each year thereafter. Relevant expenses will Your firm is thinking about investing $250,000 in $15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine. estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 9% per year?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Your firm is thinking about investing $250,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter. Relevant expenses will be
$15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is
9% per year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F818e8c44-864e-4929-ab22-5ec16e854d9f%2F8dfed764-61fb-45cf-9933-ef335a113bd5%2Fhr2ek9h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your firm is thinking about investing $250,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter. Relevant expenses will be
$15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is
9% per year?
![N
1
2
3
4
5
6
7
8
9
10
Single Payment
Compound
Amount
Present
Factor Worth Factor
To Find F
Given P
F/P
1.0900
1.1881
1.2950
1.4116
1.5386
1.6771
1.8280
1.9926
2.1719
2.3674
To Find P
Given F
P/F
0.9174
0.8417
0.7722
0.7084
0.6499
0.5963
0.5470
0.5019
0.4604
0.4224
Discrete Compounding; i = 9%
Uniform Series
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.0900
3.2781
4.5731
5.9847
7.5233
9.2004
11.0285
13.0210
15.1929
Present
Worth Factor
To Find P
Given A
ΡΙΑ
0.9174
1.7591
2.5313
3.2397
3.8897
4.4859
5.0330
5.5348
5.9952
6.4177
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4785
0.3051
0.2187
0.1671
0.1329
0.1087
0.0907
0.0768
0.0658
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0900
0.5685
0.3951
0.3087
0.2571
0.2229
0.1987
0.1807
0.1668
0.1558
Uniform Gradient
Gradient
Gradient Uniform
Present
Series
Factor
To Find A
Given G
A/G
0.0000
0.4785
0.9426
1.3925
1.8282
2.2498
2.6574
3.0512
3.4312
3.7978
Worth Factor
To Find P
Given G
P/G
0.0000
0.8417
2.3860
4.5113
7.1110
10.0924
13.3746
16.8877
20.5711
24.3728](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F818e8c44-864e-4929-ab22-5ec16e854d9f%2F8dfed764-61fb-45cf-9933-ef335a113bd5%2F88ofd608_processed.jpeg&w=3840&q=75)
Transcribed Image Text:N
1
2
3
4
5
6
7
8
9
10
Single Payment
Compound
Amount
Present
Factor Worth Factor
To Find F
Given P
F/P
1.0900
1.1881
1.2950
1.4116
1.5386
1.6771
1.8280
1.9926
2.1719
2.3674
To Find P
Given F
P/F
0.9174
0.8417
0.7722
0.7084
0.6499
0.5963
0.5470
0.5019
0.4604
0.4224
Discrete Compounding; i = 9%
Uniform Series
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.0900
3.2781
4.5731
5.9847
7.5233
9.2004
11.0285
13.0210
15.1929
Present
Worth Factor
To Find P
Given A
ΡΙΑ
0.9174
1.7591
2.5313
3.2397
3.8897
4.4859
5.0330
5.5348
5.9952
6.4177
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4785
0.3051
0.2187
0.1671
0.1329
0.1087
0.0907
0.0768
0.0658
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0900
0.5685
0.3951
0.3087
0.2571
0.2229
0.1987
0.1807
0.1668
0.1558
Uniform Gradient
Gradient
Gradient Uniform
Present
Series
Factor
To Find A
Given G
A/G
0.0000
0.4785
0.9426
1.3925
1.8282
2.2498
2.6574
3.0512
3.4312
3.7978
Worth Factor
To Find P
Given G
P/G
0.0000
0.8417
2.3860
4.5113
7.1110
10.0924
13.3746
16.8877
20.5711
24.3728
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