![the eq $100 $100 $100 $100 $100 OA V4 I$100 (P/A, i, 6)-$100 (P/F, i, 4) (FIP, ,4) O B. ¼·S 100 (FAL 3) + $100 (PAL 2) O c-V-($100 (FA i, 6) , $100 (FRI 2)] (PF, i, 2) OD. ¼=$100 (FA,i,4)-$100 + $100 (PAL2)](http://img.homeworklib.com/questions/d866b6d0-416c-11ea-b6ee-b9b309ec9395.png?x-oss-process=image/resize,w_560)
Homework Answers
(Question 1)
Net present worth (NPW) of the equipment ($) = - 200,000 + 35,000 x P/A(12%, 10) = - 200,000 + 35,000 x 5.6502**
= - 200,000 + 197,757
= - 2,243
Since NPW is negative, I will not purchase this equipment.
**From P/A Factor table
NOTE: As per Answering Policy, 1st question is answered.
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