QUESTION 3If the first cost of an asset is $15,000, and an annual operating cost of $5000 with a salvage value of $3000 after 5 years. What will bethe Annual worth and the Capital recovery. If i- 10%O AW -S-8465 and CR - $+4508O AW = S-8465 and CR = $-4508AW = S+4508 and CR = $-8465O AW S-4508 and CR S-8465

First cost = $15,000 Annual operating cost = $5000 Salvage value = $3000 Time period = 5 years…

Answered: If the first cost of an asset is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you purchase a tangible asset with a book value of $700,000. The salvage value is $ 100,000. The useful life of the asset is 30 years. How much accumulated depreciation will there be (assume that you're using the "straight line" amortization method) after 10 years?
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A project requires you to invest $10,000 now, will generate annual revenues of $1500 for 10 years and will have a salvage value of $800 at the end of year 10. If your MARR is %10 per year, is this project acceptable? Select one: a. Yes, and its PW=$525.3 X b. No, and its PW =-$1474.7. c. Yes, and its PW=$1525.3 d. No, and its PW =-$474.7
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1. Determine the better of the two alternatives using “Net Present Worth" analysis. Use an MARR of 10%. Initial Cost Annual Benefit Salvage Value Proj. X Proj. Y $12,500 $6,800 $5,000 $8,900 $2,000 $8,900 3 Years Service Life 2 Years

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If the first cost of an asset is $15,000, and an annual operating cost of $5000 with a salvage value of S3000 after 5 years. What will be the Annual worth and the Capital recovery. If i= 10% O AW -S-8465 and CR- S+4508 O AW S-8465 and CR-S-4508 O AW =S+4508 and CR= $-8465 O AW-S-4508 and CR S-8465