MARR is 6% per year. First cost, $ Annual cost, $ per year Revenue, S $ per year Salvage value, S Life, years Vendor 1 -200,000 -50,000 120,000 25,000 10 Of the following three relations, the correct one(s) to calculate the annual worth of vendor 1 cash flow estimates is (note: All dollar values are in thousands) Relation 1: AW₁ = -200(4/P,6%,10) +70+ 25(A/F,6%,10) Relation 2: AW₁ = [-200-50(P/A,6%,10) + 120(P/A,6%,10) + 25(P/F,6%,10)] (4/P,6%,10) Relation 3: AW₁ = -200(F/P,6 %, 10) + 25 + (-50 +120)(A/P,6%,10).
MARR is 6% per year. First cost, $ Annual cost, $ per year Revenue, S $ per year Salvage value, S Life, years Vendor 1 -200,000 -50,000 120,000 25,000 10 Of the following three relations, the correct one(s) to calculate the annual worth of vendor 1 cash flow estimates is (note: All dollar values are in thousands) Relation 1: AW₁ = -200(4/P,6%,10) +70+ 25(A/F,6%,10) Relation 2: AW₁ = [-200-50(P/A,6%,10) + 120(P/A,6%,10) + 25(P/F,6%,10)] (4/P,6%,10) Relation 3: AW₁ = -200(F/P,6 %, 10) + 25 + (-50 +120)(A/P,6%,10).
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
Related questions
Question
![MARR is 6% per year.
First cost, S
Annual cost.
$ per year
Revenue,
S per year
Salvage value, S
Life, years
Vendor 1
- 200,000
-50,000
120,000
25,000
10
of the following three relations, the correct one(s)
to calculate the annual worth of vendor 1 cash
flow estimates is (note: All dollar values are in
thousands)
Relation 1: AW₁ = -200(A/P,6 %,10) + 70 +
25(A/F,6%,10)
Relation 2: AW₁ = [-200 - 50(P/4,6%,10) +
120(P/A,6%, 10) +
25(P/F,6%,10)] (4/P,6%,10)
Relation 3: AW₁ = -200(F/P,6%,10) + 25 +
(-50 +120)(A/P,6%,10).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2239718-6a0c-4f5a-94a4-0e4843cd3042%2F8cab0bcf-650b-43ef-b2c7-19705655835c%2Fy7w1rqe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MARR is 6% per year.
First cost, S
Annual cost.
$ per year
Revenue,
S per year
Salvage value, S
Life, years
Vendor 1
- 200,000
-50,000
120,000
25,000
10
of the following three relations, the correct one(s)
to calculate the annual worth of vendor 1 cash
flow estimates is (note: All dollar values are in
thousands)
Relation 1: AW₁ = -200(A/P,6 %,10) + 70 +
25(A/F,6%,10)
Relation 2: AW₁ = [-200 - 50(P/4,6%,10) +
120(P/A,6%, 10) +
25(P/F,6%,10)] (4/P,6%,10)
Relation 3: AW₁ = -200(F/P,6%,10) + 25 +
(-50 +120)(A/P,6%,10).
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