N 1 2 3 4 5 6 7 8 9 10 Single Payment Discrete Compounding; i = 13% Compound Amount Present Factor Worth Factor To Find F Given P F/P 1.1300 1.2769 1.4429 1.6305 1.8424 2.0820 2.3526 2.6584 3.0040 3.3946 To Find P Given F P/F 0.8850 0.7831 0.6931 0.6133 0.5428 0.4803 0.4251 0.3762 0.3329 0.2946 Compound Amount Factor To Find F Given A FIA 1.0000 2.1300 3.4069 4.8498 6.4803 8.3227 10.4047 12.7573 15.4157 18.4197 Uniform Series Present Worth Factor To Find P Given A P/A 0.8850 1.6681 2.3612 2.9745 3.5172 3.9975 4.4226 4.7988 5.1317 5.4262 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4695 0.2935 0.2062 0.1543 0.1202 0.0961 0.0784 0.0649 0.0543 Capital Recovery Factor To Find A Given P A/P 1.1300 0.5995 0.4235 0.3362 0.2843 0.2502 0.2261 0.2084 0.1949 0.1843

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Subject: Economics 

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N
1
2345
6
7
8
9
10
Single Payment
Compound
Amount
Factor
To Find F
Given P
F/P
Discrete Compounding; i = 13%
1.1300
1.2769
1.4429
1.6305
1.8424
2.0820
2.3526
2.6584
3.0040
3.3946
Present
Worth Factor
To Find P
Given F
P/F
0.8850
0.7831
0.6931
0.6133
0.5428
0.4803
0.4251
0.3762
0.3329
0.2946
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.1300
3.4069
4.8498
6.4803
8.3227
10.4047
12.7573
15.4157
18.4197
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.8850
1.6681
2.3612
2.9745
3.5172
3.9975
4.4226
4.7988
5.1317
5.4262
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4695
0.2935
0.2062
0.1543
0.1202
0.0961
0.0784
0.0649
0.0543
Capital
Recovery
Factor
To Find A
Given P
A/P
1.1300
0.5995
0.4235
0.3362
0.2843
0.2502
0.2261
0.2084
0.1949
0.1843
Transcribed Image Text:More Info N 1 2345 6 7 8 9 10 Single Payment Compound Amount Factor To Find F Given P F/P Discrete Compounding; i = 13% 1.1300 1.2769 1.4429 1.6305 1.8424 2.0820 2.3526 2.6584 3.0040 3.3946 Present Worth Factor To Find P Given F P/F 0.8850 0.7831 0.6931 0.6133 0.5428 0.4803 0.4251 0.3762 0.3329 0.2946 Compound Amount Factor To Find F Given A F/A 1.0000 2.1300 3.4069 4.8498 6.4803 8.3227 10.4047 12.7573 15.4157 18.4197 Uniform Series Present Worth Factor To Find P Given A PIA 0.8850 1.6681 2.3612 2.9745 3.5172 3.9975 4.4226 4.7988 5.1317 5.4262 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4695 0.2935 0.2062 0.1543 0.1202 0.0961 0.0784 0.0649 0.0543 Capital Recovery Factor To Find A Given P A/P 1.1300 0.5995 0.4235 0.3362 0.2843 0.2502 0.2261 0.2084 0.1949 0.1843
A present asset (defender) has a current market value of $82,000 (year 0 dollars). Estimated
market values at the end of the next three years, expressed in year 0 dollars, are
MV₁ = $74,000, MV₂ = $60,000, MV3 = $38,000. The annual expenses (expressed in year
0 dollars) are $13,000 and are expected to increase at 4.8% per year. The before-tax nomina
MARR is 13% per year. The best challenger has an economic life of 5 years and its
associated EUAC is $34,659. Market values are expected to increase at the rate of inflation
which is 3% per year. Based on this information and a before-tax analysis, what are the
marginal costs of the defender each year and when should you plan to replace the defender
with the challenger?
Click the icon to view the interest and annuity table for discrete compounding when
MARR = 13% per year.
...
the table below. (Round to the nearest dollar.)
Year
1
Marginal Costs of the Defender
EUAC through Year k
Transcribed Image Text:A present asset (defender) has a current market value of $82,000 (year 0 dollars). Estimated market values at the end of the next three years, expressed in year 0 dollars, are MV₁ = $74,000, MV₂ = $60,000, MV3 = $38,000. The annual expenses (expressed in year 0 dollars) are $13,000 and are expected to increase at 4.8% per year. The before-tax nomina MARR is 13% per year. The best challenger has an economic life of 5 years and its associated EUAC is $34,659. Market values are expected to increase at the rate of inflation which is 3% per year. Based on this information and a before-tax analysis, what are the marginal costs of the defender each year and when should you plan to replace the defender with the challenger? Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. ... the table below. (Round to the nearest dollar.) Year 1 Marginal Costs of the Defender EUAC through Year k
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