Question 5 (10 points)

Based on the data provided and using an interest rate of 5% per year, the correct equation to calculate the Capital Recovery CR of Machine D is:

1. CR_D= 75,000(P/A, 5%, 6) + 25,000(F/A, 5%, 6)
2. CR_D= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000
3. CR_D= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000(A/P, 5%, 6)
4. CR_D= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6)

Question 6 (10 points)

Based on the data provided and using an interest rate of 5% per year, the Capital Recovery CRof Machine D is closest to:

(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)

1. CR_D= $11,101
2. CR_D= $18,452
3. CR_D= $24,776
4. CR_D= $14,777

Question 7 (10 points)

Based on the data provided and using an interest rate of 5% per year, the correct equation to calculate the Annual Worth of Machine D is:

1. AW_D= 75,000(P/A, 5%, 6) + 25,000(F/A, 5%, 6) 10,000
2. AW_D= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000
3. AW_D= 75,000(A/P, 5%, 6) + 25,000(A/F, 5%, 6) 10,000(A/P, 5%, 6)
4. AW_D= 75,000(A/P, 5%, 6) + 12,000(A/F, 5%, 6) 15,000