Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10% per year. Relevant costs are as follows Machine XYZ Investment cost $18,000 Useful life 20 years Market value $5,000 Annual operating expenses $250 Overhead cost-end of 7th year $500 Overhead cost-end of 14th year $800
Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10% per year. Relevant costs are as follows Machine XYZ Investment cost $18,000 Useful life 20 years Market value $5,000 Annual operating expenses $250 Overhead cost-end of 7th year $500 Overhead cost-end of 14th year $800
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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