Question

O Only Y and z Chapter 6 Multiple Choice_AW Short Problem Select the "best answer to the following multlple cholce questlons. Question 10 (1 point) A certaln machine has the estimates shown below: Machine First Cost ($) Annual operating cost ($/ year) -10,000 Salvage value ($) Life (years) 20,000 4,000 10 At an interest rate of 10 % per year, the annual worth of this machine is equal to: $12.658 $13.254 $13.004 $15270 9 of 10 questions saved Submit Quiz hp

Answer 1

ANSWER:

I = 10%

AW = first cost(a/p,i,n) + aoc + salvage value(a/f,i,n)

aw = -20,000(a/p,10%,10) - 10,000 + 4,000(a/f,10%,10)

aw = -20,000 * 0.1627 - 10,000 + 4,000 * 0.0627

aw = -3,254 - 10,000 + 250.8

aw = -13,003.2

so the correct answer is option c that is -$13,004