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QUESTION 1 You are tasked to calculate the economic equivalent present value of an equipment's major maintenance costs. The equipment needs a major maintenance every
QUESTION 1 You are tasked to calculate the economic equivalent present value of an equipment's major maintenance costs. The equipment needs a major maintenance every 10 years (first payment occurs at Y 10) and the cost is $6000. The use life of the equipment is 100 years. The annual interest rate is 5%. if you are using the yearly scale in your analysis, what is the value of A in your equation P = A(PA, i%,N)? Please round to the nearest integer. QUESTION 2 You are tasked to calculate the economic equivalent present value of an equipment's major maintenance costs. The equipment needs a major maintenance every 10 years (first payment occurs at Y 10) and the cost is $6000. The use life of the equipment is 100 years. The annual interest rate is 5%. a) if you are using the 10-year scale of your analysis, what is the effective 10-year interest rate? Please keep one digit after the decimal point. e.g. if you answer is 6.47%, please enter 65%. b) if you are using the yearly scale in your analysis, what is the value of N in your equation P = A(P/A, 1%,N)? Please round to the nearest integer
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