Question
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%,
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years.
First cost: $60,000
Semiannual Operating cost: $6,000
Semiannual incomes: $14,000
Salvage value : $10,000
a. EAW = $ 21,745
b. EAW = $1,958
c. EAW = $175
d. EAW = $2,285
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Financial Accounting Theory
Authors: William R Scott
5th Edition
0132072866, 978-0132072861
