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please help
ill rate even if you only get 2/3 correct
Your company manactures widgets and youre about to starting a new type of widget the Super Wide Supreme. The new equipment m
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Answer #1
Year PV factor @ 10%
1                         0.90909
2                         0.82645
3                         0.75131
4                         0.68301
5                         0.62092
6                         0.56447
7                         0.51316
8                         0.46651
9                         0.42410
10                         0.38554
11                         0.35049
12                         0.31863
13                         0.28966
14                         0.26333
15                         0.23939
16                         0.21763
17                         0.19784
18                         0.17986
19                         0.16351
20                         0.14864
Total                         8.51356
Initial cost of new equipment $          10,000
Divided by: Annuity PV factor @ 10% for n = 20            8.51356
Annualized value of the initial cost of new equipment $      1,174.60
Salvage value $            2,000
Multiply: PV factor @ 10% for 20 years            0.14864
Present value of salvage value $          297.28
Divided by: Annuity PV factor @ 10% for n = 20            8.51356
Annualized value of the salvage value $            34.92
Annualized value of the initial cost of new equipment $      1,174.60
Add: Annual expenses $      3,000.00
Less: Annualized value of the salvage value $          (34.92)
Annual revenue needed $      4,139.68
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