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

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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
35,000
45.000
20,000
47,500
3
15,000
50,000
2,000
53,500
O 63,256
O 69.289
O 68,476
O 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.
O 65,765
O 64,332
O 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?
O 1
O 2
O 3
O 4
Transcribed Image Text: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 35,000 45.000 20,000 47,500 3 15,000 50,000 2,000 53,500 O 63,256 O 69.289 O 68,476 O 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. O 65,765 O 64,332 O 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? O 1 O 2 O 3 O 4
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