Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) (30 points) A company can invest in smart monitoring equipment for $67.000) The company estimates that it will save $29,000 per year in

1) (30 points) A company can invest in smart monitoring equipment for $67.000) The company estimates that it will save $29,000 per year in labor costs. Maintenance costs will be $8000 per year. At the end of the 5 years the company will sell it for a market value of $60,000 MARR = 10%. a. (8 points) Find the Present Worth of this investment. u.168 O. S132 PW=-67,000 +29,000 (ple o%s)- Roso (Ple ,10%SJ +301000 (PE ib h5) Pw = -67,000 +141,172 -39944 +15396 pw= 50624 b. (8 points) Find the Future Worth of this investment. Fw= pw (Flp, lo1,5) fw = 50624CI949) fw = 9 666.176 %3D c. (6 points) Is this a good investment for this company? Circle one: es No d. (8 points) What is the Simple Payback Period for this investment?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a Proesent Value 67000 29000 8000 PVA 10 5 30000 PVA10 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Algebra Graphs and Models

Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna

5th edition

321845404, 978-0321791009, 321791002, 978-0321783950, 321783956, 978-0321845405

More Books

Students also viewed these Accounting questions