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PLEASE! A Mitsubishi motor grader costs $270,978.25. The company can put $21,900 down payment on the motor grader. The company estimates that the annual Operations

PLEASE!

A Mitsubishi motor grader costs $270,978.25. The company can put $21,900 down payment on the motor grader. The company estimates that the annual Operations and Maintenance (O&M) cost of the new motor grader will be $3500 per year. They also estimate that the O&M costs will increase each year at the rate of $25 per year through the life of the motor grader. The motor grader will generate an average annual savings to the company of $30,000. The company also estimates that they can sell the motor grader at the end of its life for $75,000. Calculate the Net Present Worth of the motor grader. The motor grader has a 15-year life and the Minimum Acceptable Rate of Return (MARR) is 4-1/2% per year. Calculate the NAW of the Mitsubishi motor grader.

Draw the Cash Flow diagram Determine the APR Determine the periodic annual interest rate Determine the number of compounding periods per year, m Determine the number of years of cash flow Determine the total number of compounding period, n Draw the Cash Flow diagram Determine the Net Annual Worth

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