The present worth of the machinery.
Answer to Problem 1P
The present worth of the machinery is
Explanation of Solution
Given:
Cost of machinery is
Savings are
Salvage value is
Interest rate is
Calculation:
Write the formula to calculate the present worth.
Here, initial cost of machine is P, amount of annual savings is A, salvage value is F, interest rate is i and time period is n.
Substitute
Conclusion:
Thus, the present worth of the machinery is
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Chapter B Solutions
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