Question

A CNC machining center was purchased 6 years ago for $100,000. The current market value is $200,000, which will decline as follows over the next 5 years: $140,000, $130,000, $120,000, $100,000, and $80,000. The O&M costs are estimated to be $36,000 this year. These costs are expected to increase by $5,000 per year starting year 2. MARR = 10% Reference: Case Study 13 The foregone interest in year 4 is O A. $13,000 OB. $14,000 OC. $12,000 OD. $8,000

Answer 1

Page 01 Inswer calculating the foregone interest in your 10. The inescapable enthusiam for year 5 is in escapable enthusiam for yours = ( Book an incentive toward the stout of geari ) ( loan fee) the problem we have the values = 100000 x 10:13 = 100000 x0,10 = $10,000 Extra information if there should be on occurrence inescapable enthusiam for yecon 4 is the inescapable enthusiam for year 4 = (Book an incentive toward the start of yearly Imeans consummation of third year)) (loon fee) = 120000x10°C. = 120000 x 0.10 - $19,000 The foregone interest in your 4 is $190001 Toption c is correct Scanned with Cam Scanner