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A manufacturing facility is spending $160,000 now to install a new production line that will operate for 60 months. The cost of operating the production
A manufacturing facility is spending $160,000 now to install a new production line that will operate for 60 months. The cost of operating the production line over each of the first 24 months will be $8,000 per month and, then, the cost will be $12,000 per month in each of the remaining 36 months.
Which of the following equations can be used to correctly calculate the present worth of the installation and maintenance costs?
a. P = $160,000 + $8,000(P|A, i, 24) + $12,000(P|A, i, 36)(P|F, i, 23)
b. P = $160,000 + $8,000(P|A, i, 24) + $12,000(P|A, i, 36)(P|F, i, 24)
c. None of these equations correctly calculate the present worth.
d. P = $160,000 + $8,000(P|A, i, 24) + $12,000(P|A, i, 36)(P|F, i, 60)
Which of the following equations can be used to correctly calculate the present worth of the installation and maintenance costs?
a. P = $160,000 + $8,000(P|A, i, 24) + $12,000(P|A, i, 36)(P|F, i, 23)
b. P = $160,000 + $8,000(P|A, i, 24) + $12,000(P|A, i, 36)(P|F, i, 24)
c. None of these equations correctly calculate the present worth.
d. P = $160,000 + $8,000(P|A, i, 24) + $12,000(P|A, i, 36)(P|F, i, 60)
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