Homework Answers
Let discounted payback period be n yrs
104378.53 * (P/A, 9%,n) = 280000
(P/A, 9%,n) = 280000 / 104378.53 = 2.682544
((1 + 0.09)^n-1)/(0.09 * (1 + 0.09)^n) = 2.682544
((1.09)^n-1)/(0.09 * (1.09)^n) = 2.682544
(1.09)^n - 1 = 2.682544 * (0.09 * (1.09)^n)
(1.09)^n - 1 = 0.24142896 * (1.09)^n)
(1.09)^n = 1 / ( 1 - 0.24142896) = 1.318268
using log both sides
n = log 1.318268 / log 1.09
n = 3.21 yrs
Discounted payback period = 4 yrs (nxt year, as payback would not be achieved in 3 yrs)
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A
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bill is estimated to be
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with either a state of the art “Automatic Machine” which will
reduce the labor cost by 80% or with a standard machine. The
automatic machine will cost ₹ 3,50,000 with an estimated life of 7
years, whereas the standard machine will cost ₹ 2,00,000 with an
estimated life of 10 year. Both machine have no residual value.
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A
2 comma 5002,500
square foot house in New Jersey costs
$1 comma 8001,800
each winter to heat with its existing oil-burning furnace. For
an investment of
$5 comma 5005,500,
a natural gas furnace can be installed, and the winter heating
bill is estimated to be
$1 comma 0001,000.
If the homeowner's MARR is
66%
per year, what is the discounted payback period of this
proposed investment? (please show work in excel)
A 2,500 square foot house in New Jersey...
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