The following data for X and Y are in format [X,Y). First cost in $: [-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage val in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% year. The equation that will calculate the present worth of machine X is: Select one: O a. PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2) O b. PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4) O c. PWX = -80,000 - 20,000(P/A,10%,4) - 70,000(P/F,10%,2) + 10,000(P/F,10%,4) O d. PWX = -80,000 - 20,000 (P/A, 10%,4) - 80,000(P/F,10%,2} +
The following data for X and Y are in format [X,Y). First cost in $: [-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage val in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% year. The equation that will calculate the present worth of machine X is: Select one: O a. PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2) O b. PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4) O c. PWX = -80,000 - 20,000(P/A,10%,4) - 70,000(P/F,10%,2) + 10,000(P/F,10%,4) O d. PWX = -80,000 - 20,000 (P/A, 10%,4) - 80,000(P/F,10%,2} +
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The following data for X and Y are in format [XY]. First cost in $:
[-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage value
in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% per
year. The equation that will calculate the present worth of
machine X is:
Select one:
a.
b.
O c.
PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2)
PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4)
PWX = -80,000 - 20,000(P/A,10%,4) - 70,000[P/F,10%,2) +
10,000(P/F,10%,4)
O d. PWX = -80,000 - 20,000(P/A, 10%,4) - 80,000(P/F,10%,2) +
10,000 (P/F,10%,4)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b80beb3-7f20-4cd8-9570-8d0670fcd8d3%2F510369e4-a723-4e9b-8588-88fb5996cc52%2Fdca9xy_processed.png&w=3840&q=75)
Transcribed Image Text:The following data for X and Y are in format [XY]. First cost in $:
[-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage value
in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% per
year. The equation that will calculate the present worth of
machine X is:
Select one:
a.
b.
O c.
PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2)
PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4)
PWX = -80,000 - 20,000(P/A,10%,4) - 70,000[P/F,10%,2) +
10,000(P/F,10%,4)
O d. PWX = -80,000 - 20,000(P/A, 10%,4) - 80,000(P/F,10%,2) +
10,000 (P/F,10%,4)
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