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QUESTION 1 An accountant has to pick between the following two machines Machine 1.. Machine 2 Annual oper cost.-8000 Annual savings...15000 Salvage.... A vears .-11000
QUESTION 1 An accountant has to pick between the following two machines Machine 1.. Machine 2 Annual oper cost.-8000 Annual savings...15000 Salvage.... A vears .-11000 15000 4 years Using 8% interest calculate the following Find present worth increment between machine a& b 15,980 17,098 19,999 23,011 QUESTION 2 An accountant has to pick between the following two machines Machine 1 Machine 2 Initial cost.-.75000 13000 000 life 4 years 4 years Using 8% interest calculate the following Find annual worth increment between machine a& b 1,986 2,963 6,947 8,654 QUESTION 3 An accountant has to pick between the following two machines Machine 1 Machine 2 Initial cost.-7500013000 8000. 11000 Annual savings. 4 years Using 8% interest what does the accountant choose to purchase Machine A Machine B Neither QUESTION 4 The construction cost of a memorial is estimated to be 400,000 with annual maintenance costs estimated at 50,000. What is the capitalized cost at 7% interest. 714,285 962,365 1,085,085 1,114,285 QUESTION 5 A building will require the following maintenance schedule. 65,000 now and 88,000 e capitalized cost at 5% interest very 10 years forever. What is the 204,920 225,000 236,856 240,655
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