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The salvage value of a front loader at the end of 4 years is Php23,000 and Php18,000 at the end of 5 years. The investment cost of the loader is Php39,000. If the maintenance cost is Php17,000 in year 1 and increases by Php1,200 every year, decide whether the loader should be kept for 4 or 5 years using annual worth analysis. Assume interest rate at 12% per year.

The salvage value of a front loader at the end of 4 years is Php23,000 and Php18,000 at the end of 5 years. The investment cost of the loader is Php39,000. If the maintenance cost is Php17,000 in year 1 and increases by Php1,200 every year, decide whether the loader should be kept for 4 or 5 years using annual worth analysis. Assume interest rate at 12% per year.

Structural Analysis
Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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The salvage value of a front loader at the end of 4 years is Php23,000 and Php18,000 at the end of 5 years. The investment cost of the loader is Php39,000. If the maintenance cost is Php17,000 in year 1 and increases by Php1,200 every year, decide whether the loader should be kept for 4 or 5 years using annual worth analysis. Assume interest rate at 12% per year.
Transcribed Image Text:The salvage value of a front loader at the end of 4 years is Php23,000 and Php18,000 at the end of 5 years. The investment cost of the loader is Php39,000. If the maintenance cost is Php17,000 in year 1 and increases by Php1,200 every year, decide whether the loader should be kept for 4 or 5 years using annual worth analysis. Assume interest rate at 12% per year.
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