n an effort to maintain compliance with noise emission standards on the processing floor, National Semiconductor requires the use of noise-measuring instruments. The company plans to purchase a new portable system at the end of next year at a cost of $9,000. National estimates the maintenance cost per to be $500 per year for 3 years, after which the system will be salvaged for $2,000 (Using Excel). a) Use Excel to find the equivalent future value after four years, ?, for the cash flow associated with the noise-measuring system National is planning to purchase using an interest rate of ? = 8% compounded annually. b) Use Excel to find the ? value if the maintenance costs are $300, $500, and $1,000 for years 1, 2, and 3, respectively. c) Use Excel to find the ? value for part (a) if the National’s MARR is ? = 12.5% compounded annually.
In an effort to maintain compliance with noise emission standards on the processing floor, National
Semiconductor requires the use of noise-measuring instruments. The company plans to purchase a new
portable system at the end of next year at a cost of $9,000. National estimates the maintenance cost per
to be $500 per year for 3 years, after which the system will be salvaged for $2,000 (Using Excel).
a) Use Excel to find the equivalent
noise-measuring system National is planning to purchase using an interest rate of ? = 8% compounded
annually.
b) Use Excel to find the ? value if the maintenance costs are $300, $500, and $1,000 for years 1, 2, and 3,
respectively.
c) Use Excel to find the ? value for part (a) if the National’s MARR is ? = 12.5% compounded annually.
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