Solve by HAND.
Initial Cost : $4,200
Maintenance every 4 years: $250
Annual Cost: $0
Salvage Value: $40
i = 10%
n = 20 years
Calculate PW,AW,FW
Here annual cost is given 0
PW = -4200 - 250*[(P/F,10%,4) + (P/F,10%,8) + (P/F,10%,12) + (P/F,10%,16)] + 40*(P/F,10%,20)
= -4200 - 250*[0.683013 + 0.466507 + 0.318631 + 0.217629] + 40*0.148644
= -4612.50
FW = -4612.50 * (F/P,10%,20) = -4612.50 * 6.7275 = -31050.77
AW = -4612.50 * (A/P,10%,20) = -4612.50 * 0.117460 = -542.13
Solve by HAND. Initial Cost : $4,200 Maintenance every 4 years: $250 Annual Cost: $0 Salvage...
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