An architectural company must replace one of its super computers. The key parameters (all arbitrary values) of the three computers under scrutiny are provided below. Apple 15,000 45,000 at EOY1 increasing by $5,000 annually thereafter 41,000 at EOY1 38,000 at EOY1 increasing by 1% annually thereafter Parameters 1. Initial Cost ($) Dell HP 22,000 26,000 43,000 at EOY1 increasing by 2.0% annually thereafter 46,000 at EOY1 increasing by $500 annually thereafter 2. Revenues ($) 33,000 at EOY1 increasing by 0.5% annually thereafter 3. Operating costs (S) decreasing by 2% annually thereafter 4. End-of-life salvage value (S) 5. Useful life 0 400 900 5 10 (years) EOY End-of-year Industry standard for backhoes = 4 years MARR 10% Apple's Net Present Worth (NPW) (rounded to the nearest $100) of 1 a) $31,600; b) $32,400; c) $35,800; d) $38,300. 2. Dell's NPW (rounded to the nearest $100) is a) $39,300; b) $41,500; c) $43,600; d) $46,100. 3. HP's net worth (rounded to the nearest $100) after 5 years is a) $37,400; b) $42,100; c) $44,800; d) $47,000 4. Dell's Annual Equivalent Worth (AEW) (rounded to the nearest $100) is a) $6,500; b) $6,800; c) $7,100; d) $7,500. k%= DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00% i% = DISCRETE RATE OF INTEREST 0.1000 0.1200 (F/P,i%,n) (P/F, 1%,n) (A/P,1%,n) (P/A,i%,n) (A/F,i%,n) (FIA,1%,n) (A/G,i%,n) (P/G,i%,n) (F/G,i%,n) (P/C.I.k.N) ik (PIC.I.k.N) i-k 1 1.1000 0.9091 1.1000 0.9091 1.0000 1.0000 0.0000 0.0000 0.0000 0.9091 0.9091 2.1000 2 1.2100 0.8264 0.5762 1.7355 0.4762 0.4762 0.8264 1.8182 1.0000 1.8347 0.4021 3 0.3021 0.9366 2.7273 1.3310 0.7513 2.4869 3.3100 2.3291 3.1000 2.7772 0.2155 0.6830 4 1.4641 0.3155 3.1699 4.6410 1.3812 6.4100 3.6364 4.3781 3.7367 5 0.6209 6.1051 1.6105 0.2638 3.7908 0.1638 11.0510 4.7138 4.5455 1.8101 6.8618 0.5645 2.2236 1.7716 0.2296 0.1296 7.7156 9.6842 17.1561 5.7086 5.4545 6 4.3553 1.9487 0.5132 0.2054 4.8684 0.1054 9.4872 2.6216 12.7631 24.8717 6.7215 6.3636 7 34.3589 8 2.1436 0.4665 0.1874 11.4359 7.7528 7.2727 5.3349 0.0874 3.0045 16.0287 0.4241 5.7590 13.5795 19.4215 8.8028 8.1818 2.3579 0.1736 0.0736 3.3724 45.7948 10 2.5937 0.1627 59.3742 9.0909 0.3855 6.1446 0.0627 15.9374 3.7255 22.8913 9.8719 11 18.5312 75.3117 2.8531 0.3505 0.1540 6.4951 0.0540 4.0641 26.3963 10.9605 10.0000 12 3.1384 0.3186 6.8137 21.3843 93.8428 0.1468 0.0468 4.3884 29.9012 12.0689 10.9091 13 7.1034 0.0408 115.2271 3.4523 0.2897 0.1408 24.5227 4.6988 33.3772 13.1974 11.8182 0.0357 27.9750 36.8005 14.3465 12.7273 14 3.7975 0.2633 0.1357 7.3667 4.9955 139.7498 0.2394 7.6061 0.0315 15.5164 13.6364 15 4.1772 0.1315 31.7725 5.2789 40.1520 167.7248 35.9497 16 199.4973 4.5950 0.2176 0.1278 7.8237 0.0278 5.5493 43.4164 16.7076 14.5455 8.0216 17.9205 17 5.0545 0.1978 0.1247 0.0247 40.5447 5.8071 46.5819 235.4470 15.4545 0.1219 8.2014 16.3636 6.0526 18 5.5599 0.1799 0.0219 45.5992 49.6395 275.9917 19.1554 8.3649 51.1591 6.2861 52.5827 17.2727 19 6.1159 0.1635 0.1195 0.0195 321.5909 20.4128 20 6.5081 21.6930 6.7275 0.1486 0.1175 8.5136 0.0175 57.2750 55.4069 372.7500 18.1818