A company is considering the purchase of a piece of equipment that will have the following costs. Purchase Cost = $80,000 Annual Maintenance Costs = $12,000 Salvage Cost = $10,000 Useful Life = 20 years

A) Find Capitalized cost of the equipment, use MARR= 12%

B) Now additionally assume that the equipment will provide the following benefits over its useful life: $25,000 per year in each of the first 12 years; and $30,000 per year in each of the remaining 8 years. What is the equivalent unform annual worth associated with equipment over its useful life?

Question

A company is considering the purchase of a piece of equipment that will have the following costs. Purchase Cost = $80,000 Annual Maintenance Costs = $12,000 Salvage Cost = $10,000 Useful Life = 20 years

A) Find Capitalized cost of the equipment, use MARR= 12%

B) Now additionally assume that the equipment will provide the following benefits over its useful life: $25,000 per year in each of the first 12 years; and $30,000 per year in each of the remaining 8 years. What is the equivalent unform annual worth associated with equipment over its useful life?

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A company is considering the purchase of a piece of equipment that will have the following costs. Purchase Cost = $80,000 Annual Maintenance Costs =

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