A new punching machine will cost $4285. At the end of its 10 years useful life, the machine can be sold for $824

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A new punching machine will cost $4285. At the end of its 10 years useful life, the machine can be sold for $824

Question 4

A new punching machine will cost $4285. At the end of its 10 years useful life, the machine can be sold for $824. The new machine will reduce annual expenses by $562. The interest rate is 10%.

Question 5

The annual income from an apartment complex is $23146. The annual expense is estimated to be $3127. The apartment complex could be sold for $116233 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you were to buy it now?

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Answer 1

Answer #1

4) i = 10%

PW = - 4285 + 562/1.1 + ..... + 562/1.1¹⁰ + 824/1.1¹⁰

PW = - $ 514.07

5) i = 10%

PW = (23146 - 3127)/1.1 + ..... + 20019/1.1¹⁰ + 116233/1.1¹⁰

PW = $ 167820.94

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Answer 2

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A new punching machine will cost $4285. At the end of its 10 years useful life, the machine can be sold for $824

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