Question

Question #1 The below table represents the cost of maintenance for a copy machine. What will be the present worth of the main
0 0
Add a comment Improve this question Transcribed image text
Answer #1

ANSWER:

I = 10%

pw = maintenance cost in year 1(p/a,i,n) + increase in maintenbance cost(p/g,i,n) + salvage value in year 10(p/f,i,n)

pw = - 1,000(p/a,10%,10) - 50(p/g,10%,10) + 100(p/f,10%,10)

pw = -1,000 * 6.145 - 50 * 22.891 + 100 * 0.3855

pw = -6,145 - 1,144.55 + 38.55

pw = -7,251

euac = pw(a/p,i,n)

euac = -7,251(a/p,10%,10)

euac = -7,251 * 0.1627

euac = -1,179.738

so the equivalent annual cost is -$1,179.738

Add a comment
Know the answer?
Add Answer to:
Question #1 The below table represents the cost of maintenance for a copy machine. What will...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT