Your company is planning to purchase a new loader for $20,937. If the company keeps the old loader, it will have $1,959 additional maintenance cost for the first year and increases $308 each year till the eighth year. Given the company's minimum attractive rate of return (MARR) is 6%, what is the present cost of keeping the old loader? 6% n 1 2 3 4 5 6 7 8 Single Payment Compound Present Worth Amount Factor Factor Find F Given P F/P 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 Find P Given F P/F .9434 .8900 .8396 .7921 .7473 .7050 .6651 .6274 Sinking Fund Factor Find A Given F A/F 1.0000 4854 3141 .2286 .1774 .1434 .1191 .1010 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.0600 .5454 .3741 .2886 .2374 2034 .1791 .1610 Compound Present Amount Worth Factor Factor Find F Given A F/A 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 Find P Given A P/A 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 Arithmetic Gradient Gradient Present Worth Find P Given G P/G 0 0.890 2.569 4.945 7.934 Gradient Uniform Series Find A Given G A/G 0 0.485 0.961 1.427 1.884 2.330 2.768 3.195 11.459 15.450 19.841 6% n 1 2 3 4 5 67 8

Your company is planning to purchase a new loader for $20,937. If the company keeps the old loader, it will have $1,959 additional maintenance cost for the first year and increases $308 each year till the eighth year. Given the company's minimum attractive rate of return (MARR) is 6%, what is the present cost of keeping the old loader? 6% n 1 2 3 4 5 6 7 8 Single Payment Compound Present Worth Amount Factor Factor Find F Given P F/P 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 Find P Given F P/F .9434 .8900 .8396 .7921 .7473 .7050 .6651 .6274 Sinking Fund Factor Find A Given F A/F 1.0000 4854 3141 .2286 .1774 .1434 .1191 .1010 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.0600 .5454 .3741 .2886 .2374 2034 .1791 .1610 Compound Present Amount Worth Factor Factor Find F Given A F/A 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 Find P Given A P/A 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 Arithmetic Gradient Gradient Present Worth Find P Given G P/G 0 0.890 2.569 4.945 7.934 Gradient Uniform Series Find A Given G A/G 0 0.485 0.961 1.427 1.884 2.330 2.768 3.195 11.459 15.450 19.841 6% n 1 2 3 4 5 67 8

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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You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $86,000 immediately. If your cost of capital is 7.3%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $. (Round to the nearest dollar)
A firm can lease a truck for 4 years at a cost of $35,000 annually. It can instead buy a truck at a cost of $85,000, with annual maintenance expenses of $15,000. The truck will be sold at the end of 4 years for $25,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent annual cost b. Which is the better option? Lease O Buy
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Please answer fast I give upvote .
Which one should you choose?
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