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E. Consider the purchase of two computer-aided design (CAD) systems. Assume the annual effective interest rate is 6.0%. System 1 a) Annual cost. b)
E. Consider the purchase of two computer-aided design (CAD) systems. Assume the annual effective interest rate is 6.0%. System 1 a) Annual cost. b) Present worth. c) Future worth Initial/cost $100,000 $65,000 Maintenance & operating cost $4,000/year $18,000 $8,000/year $5,000 Salvage after 5 years Using each of the three methods below, compare the two CAD systems and offer a recommendation. System 2 (System 1-$24,546.50 (System 1-$103,398.46 (System 1-$138,370.93 System 2-$22,543.79) System 2-$94,001.08) System 2 -$127,081,40)
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Answer Q2 Present worth value of system 1 100000 4000PA 13 5 10000PF 13 5 100000 400010135 101310135 ...
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
