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Q. 5 - 4 . Evaluate machine XYZ on the basis of the PW method when the MARR is 10% per year. Relevant cost data
Q.5-4. Evaluate machine XYZ on the basis of the PW method when the MARR is 10% per year. Relevant cost data are as follows:
Machine XYZ
Investment cost
$18,000
Useful life
20 years
Market value
$5,000
Annual operating expenses
$250
Overhead cost-end of 7th year
$500
Overhead cost-end of 14th year
$800
Q.5-4. Evaluate machine XYZ on the basis of the PW method when the MARR is 10% per year. Relevant cost data are as follows:
| Machine XYZ |
Investment cost | $18,000 |
Useful life | 20 years |
Market value | $5,000 |
Annual operating expenses | $250 |
Overhead cost-end of 7th year | $500 |
Overhead cost-end of 14th year | $800 |
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