Question
Answer the following questions for the table data below. Define variables and write equations for P, F, A, and/or RATE. Estimated Costs/Revenues Value P, $
Answer the following questions for the table data below. Define variables and write equations for P, F, A, and/or RATE. Estimated Costs/Revenues Value P, $ Interest rate, i% 5.1% First cost, $ (32,640.00) ($32,640.00) Life, n, years 12 Salvage, $ 7,903.00 $4,350.70 Maintenance cost, year 1, $ (4,433.00) ($63,018.61) Cost gradient, g% 9.2% Total, $ ($91,307.90) a. Write an Excel relation and a factor formula relation for the future worth of maintenance costs. (10 points) b. Write an Excel relation or a factor formula relation for the present value in year 0 of the salvage value in the table shown above. (5 points) c. What type of cash flow gradient is this, arithmetic or geometric gradient. Why? Explain your answer. (5 points)
Answer the following questions for the table data below. Define variables and write equations for P,F,A, and/or RATE. a. Write an Excel relation and a factor formula relation for the future worth of maintenance costs. (10 points) b. Write an Excel relation or a factor formula relation for the present value in year 0 of the salvage value in the table shown above. (5 points) c. What type of cash flow gradient is this, arithmetic or geometric gradient. Why? Explain your answer. (5 points) Answer the following questions for the table data below. Define variables and write equations for P,F,A, and/or RATE. a. Write an Excel relation and a factor formula relation for the future worth of maintenance costs. (10 points) b. Write an Excel relation or a factor formula relation for the present value in year 0 of the salvage value in the table shown above. (5 points) c. What type of cash flow gradient is this, arithmetic or geometric gradient. Why? Explain your answer. (5 points)Step by Step Solution
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