Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 1 35,000 45,000 2 20,000 47,500 15,000 50,000 4 2,000 53,500 O 63,256 O 69.289 68,476 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. 65,765 64,332 67,428 O 66,256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 1 O 2 3 O 4
Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 1 35,000 45,000 2 20,000 47,500 15,000 50,000 4 2,000 53,500 O 63,256 O 69.289 68,476 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. 65,765 64,332 67,428 O 66,256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 1 O 2 3 O 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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