What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $85,000, an annual operating cost of $13,500, and an estimated salvage value of $23,000 after six years of use at an annual interest rate of 8%? - X More Info
What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $85,000, an annual operating cost of $13,500, and an estimated salvage value of $23,000 after six years of use at an annual interest rate of 8%? - X More Info
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $85,000, an annual operating cost of $13,500, and an estimated salvage value of $23,000 after six years of use at an annual interest rate of 6%?
X
More Info
Equal Payment Series
Single Payment
Compound Present
Amount Worth
Compound
Amount
Factor
(F/A, I, N)
Sinking Present
Fund Worth
Factor Factor
Capital
Recovery
Factor
(A/P, i, N)
Factor
Factor
(F/P, i, N)
(P/F, i, N)
(A/F, i, N)
(P/A, i, N)
1.0800
0.9434
1.0000
1.0000
0.9434
1.0800
1.1238
0.8900
2.0800
0.4854
1.8334
0.5454
1.1910
0.8396
3.1836
0.3141
2.6730
0.3741
1.2625
0.7921
4.3746
0.2288
3.4861
0.2886
1.3382
0.7473
5.6371
0.1774
4.2124
0.2374
1.4185
0.7050
6.9753
0.1434
4.9173
0.2034
0.6851
8.3938
0.1191
5.5824
0.1791
1.5038
1.5938
1.6895
0.6274
9.8975
0.1010
6.2098
0.1610
0.5919
11.4913
0.0870
6.8017
0.1470
1.7908
0.5584
13.1808
0.0759
7.3801
0.1359
SAWNIN
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