Question
Problem 4 Table below shows information for a machine that is planning to purchase, interest rate of 10% per year Year First Cost Maintenance and
Problem 4
Table below shows information for a machine that is planning to purchase, interest rate of 10% per year
| Year | First Cost | Maintenance and operation cost | Salvage | AW |
| 0 | 345,000 (First cost) |
|
|
|
| 1 |
| 148,000 | 140,000 |
|
| 2 |
| 148,000 | 140,000 |
|
| 3 |
| 148,000 | 140,000 |
|
| 4 |
| 210,000 | 0 |
|
| 5 |
| 210,000 | 0 |
|
| 6 |
| 210,000 | 0 |
|
- Draw Cash flow diagram
- Complete the fifth Column (AW). Show detailed calculation
- Specify the economical service life (ESL) and explain why.
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The Four Corners Of Financial Accounting
Authors: Shaho Heidari Gandoman
1st Edition
1952751950, 978-1952751950
