Question

A large standby electricity generator in a hospital operating room has a first cost of $72,750 and may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is described by the equation S=72,750(1 - 0.15)", where n is the number of years after purchase. The operating cost of the generator will be constant at $6,000 per year, and the interest rate is 12% per year. Determine the economic service life and associated AW values. The economic service life is years and the AW value is $- 20

Answer 1

AW = - 72750 (A/P, 124.11)-6000 +61834.5 (^/F,12%,1) -72750 x 0.12x1.12' 0:12 -6000 + 61637.5 X 1.12'-1 1:12'-1 - -72750 ):12 6000 t 61837.5 x1 -25642.5 = 19.,2) Aw2 - –72750 ( A/P, 127.,2) – 6000 +52561.875 (^/F, 12-1. -6000 +52561.875 x 0.471698 72750 X 0.591698 - 24252.698 -72750 ( ^/P, 127,3) - 6000+ 44677.59(0/F, 12°,3) AW3 = - 6000 + 44 677.59 x 0.2963 -72750 x 0.4163 - 23047.855 - 6000 + 37975.95( ^/7,12-1,4) AW4= -72750 ( A1P, 12°/,4) -72750 *0.329 2 - 6000 + 37975.95 x 0.2092 22 004.73 Aws 72750 CAIP, 127. $ ) – 6000 + 32279.56 (A/F, 1241. 5) 6000 + 32279:56 * 0.1574 72750 x 0.2774 21100047 6000 + 27437.629 ( A1F, 12-9.16) An 6 = -72750 ( AMP 121.,6 ) 72750 X 0.2432 - 6000 + 27437.629 X 0.123 2 20312484 AW with 6 years $ - 20312:48 per ESL je yean (Thanayan)