Present worth of A = -4500 – 4500(P/F, 6%, 5) + 500(P/F, 6%, 5) + 500(P/F, 6%, 10) – 300(P/A, 6%, 10)
= -4500 – 4500*0.74726 + 500*0.74726 + 500*0.55839 – 300*7.36009
= -9417.87
Present worth of B = -5500 + 0(P/F, 6%, 10) – 400(P/A, 6%, 10)
= -5500 – 400*7.36009
= -8444.03
Since PW of B is greater, we select B
57 The Larkspur grinder. Compute ally exclusive alta would recommend pin sour Furniture Company needs a...
The Larkspur Furniture Company needs a new grinder. Compute the present worth for these mutu- ally exclusive alternatives and identify which you would recommend given i = 6% per year. Larkspur uses a 10-year planning horizon. Alternative A B Initial cost Annual costs Salvage value Life $4500 $300 $500 5 years $5500 $400 $0 10 years
i dont want excel answer
5- The Larkspur Furniture Company needs a new grinder. 37 Compute the present worth for these mutually exclusive alternatives and identify which you would recommend given i = 6% per year. Larkspur uses a 10-year planning horizon. Alternative B A Initial cost $4500 $5500 Annual costs $300 $400 Salvage value $500 $0 Life 5 years 10 years
Question 4. (20 points): The Big Discount Furniture Store (BDFS) needs a new generator. Compute the present worth for these mutually exclusive alternative and identify which you would recommend giving the interest ratei - 5,5% per year. BDFS use a 10-year planning horizon. Alternative Initial cost Salvage value Life $4500 $500 5 years $5500 $0 10 years
A company needs a new mechanical device. Compute the present worth for these mutually exclusive alternatives. Identify which you would recommend and why for given i=10% per year. The company uses a 12-years planning horizon. Initial Cost Annual Costs Salvage Value Life Alternative A $8000 $700 $900 6 years Alternative B $10000 $800 $700 12 years