Kisting clory 30,000 is now worth $15,000 in mark ne equipment is kept in service for on will cost $7,000 in operation and ma osts and will have a market value of S nd of the year. Using a MARR of 10%, arginal cost of keeping and operating quinment this one more vear A Š
Kisting clory 30,000 is now worth $15,000 in mark ne equipment is kept in service for on will cost $7,000 in operation and ma osts and will have a market value of S nd of the year. Using a MARR of 10%, arginal cost of keeping and operating quinment this one more vear A Š
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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8
Transcribed Image Text:Existing factory equipment bought 5 years ago for
$30,000 is now worth $15,000 in market value. If
the equipment is kept in service for one more year,
it will cost $7,000 in operation and maintenance
costs and will have a market value of $10,000 at the
end of the year. Using a MARR of 10%, compute the
marginal cost of keeping and operating the
equipment this one more year. .. A. $22,000 B.
$13,000 C. $13,500 D. $23,500
Transcribed Image Text:Exntng tadory equipment bought 5years ago for $30.000 is now worth $15,000 in market value. If the equipment is kept in service for one more year, it will cost $7,000 in operation and mainterance costs and will
have a markat value of S10.000 at the end of the year Using a MARR of 10%, compute the marginal cost of keeping and operating the equipment this one more year.
OA S2.000
OB S13.000
OC S13500
OD $23500
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