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Can someone please help me with this question please? I need to know how to do it asap ;--; Please write down all the steps
Can someone please help me with this question please? I need to know how to do it asap ;--;
Please write down all the steps! Thank you so much!!
Use the following information Defender: Current salvage value = $8,000, decreasing at an annual rate of 1000$ from the previous year's value Required overhaul = $1,500 O O&M = $2,000 in year 1, increasing by 30% per year I Challenger: O Ne*=5 O AECc+= 5500 MARR=10% 1) The PV of the optimal indefinite plan is within $50 of which of the following? Hint: this is a multi-step problem. To solve this, first you need to figure the AECo* and then you need to do marginal analysis to figure out the optimal amount of time to keep the defender. Once you've done that, chart out the indefinite plan in a cash-flow diagram, and then find its PV. Have fun! a) 53,272.25 b) 53,372.25 c) 53,472.25 d) 53,572.25 e) None of the above Use the following information Defender: Current salvage value = $8,000, decreasing at an annual rate of 1000$ from the previous year's value Required overhaul = $1,500 O O&M = $2,000 in year 1, increasing by 30% per year I Challenger: O Ne*=5 O AECc+= 5500 MARR=10% 1) The PV of the optimal indefinite plan is within $50 of which of the following? Hint: this is a multi-step problem. To solve this, first you need to figure the AECo* and then you need to do marginal analysis to figure out the optimal amount of time to keep the defender. Once you've done that, chart out the indefinite plan in a cash-flow diagram, and then find its PV. Have fun! a) 53,272.25 b) 53,372.25 c) 53,472.25 d) 53,572.25 e) None of the aboveStep by Step Solution
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