Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years. First cost: $48,000 Semiannual Operating cost: $7,000 Semiannual incomes: $14,000 Salvage value : $10,000 a.EAW=$21,745 b.EAW=$175 C.EAW=$2,957 d.EAW=$1,958.
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years. First cost: $48,000 Semiannual Operating cost: $7,000 Semiannual incomes: $14,000 Salvage value : $10,000 a.EAW=$21,745 b.EAW=$175 C.EAW=$2,957 d.EAW=$1,958.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years.
First cost: $48,000
Semiannual Operating cost: $7,000
Semiannual incomes: $14,000
Salvage value : $10,000
a.EAW=$21,745
b.EAW=$175
C.EAW=$2,957
d.EAW=$1,958.
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