Question 6 O pts Extra-credit question (10 points): Your company is evaluating whether to purchase an equipment or not. The initial cost is $50,000. According to your estimate, the equipment can have annual savings of $6,000 with 0.6 possibility or have annual savings of $5,000. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $20,000 or $15,000. Given MARR = 6%, what is the expected NPV of the equipment? (10 points) 696 Compound Interest Factors 0 1 2 1 2 3 4 $ 4 6 7 8 7 9 10 10 12 12 13 14 15 16 17 18 19 20 21 5.564 Sinking Fund Factor Find A Given AUF 1.0000 4854 3141 2386 1774 1414 1191 1010 0870 0759 0668 0593 0530 0476 04.00 0390 0354 0324 0296 0272 0250 0230 0213 0197 0182 0169 0157 01:46 01.36 .0126 14 15 16 17 18 19 Single Payment Compound Present Amount Worth Factor Factor Find Find P Given P Given FP P/F 1.060 9434 1.124 8900 1.191 48396 1.262 -7921 1.338 7473 1.419 7030 1.504 6651 1394 6274 1.689 5919 1791 3384 1.898 5268 2,012 1970 2.133 4688 2.261 1423 2.197 4173 2 540 3936 2.693 3714 2.854 3503 3.026 3305 3.207 3118 3.400 2942 3.604 3.820 2618 4049 2470 4.292 2330 4.549 2198 4.822 2074 5.112 1956 5.418 .1846 5.743 1741 6088 1643 6.453 1550 6.841 1462 7.251 1379 7.66 1301 10.286 0972 13.765 0727 18,420 0543 34.650 0406 32.988 .0303 44.145 0227 59.076 0169 79.057 0126 105.796 .00945 141.578 00206 189.464 00528 253545 00394 339 300 00395 6.960 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Glven P Given A A/P FIA 1.00 1.000 5454 2.000 3741 3.184 2836 4 175 2374 5.617 2034 6.975 1791 394 1610 9.897 1470 11.491 1359 13.181 .1268 14.972 1193 16.870 11.30 18.882 1076 21015 1000 23.276 0990 25.672 0954 28.213 0924 30.906 0896 33.760 0872 36.736 ORSO 39993 0830 43.392 OS 46.996 0797 50815 0782 54864 0769 59.136 0757 63.700 0746 ON 528 0736 73.640 0726 79,038 071 24.01 0710 90.890 0703 97.343 06965 104.184 0690 111.415 0665 154762 0647 212.743 0634 290 335 0625 194.171 0619 $33.126 0614 719. ONO 0610 967.92 OOK 13009 0606 17466 0604 23430 DO 3141.1 0602 4209.1 0602 56383 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given Given G A/G P/G 0 0.45 0.890 0.961 2.569 1.427 4.945 1884 7.934 2.330 11.459 2.763 15.450 3.195 19.841 3.613 24.577 4022 29.602 4.421 34.870 4.811 40.337 5.192 45.963 51.713 5.926 37554 6.279 63.459 6.624 69.401 75.357 7.287 1306 7.605 87.230 7.915 93.113 8.217 98.941 8.510 104.700 8.795 110.381 9,072 115.973 9.341 121.468 9.603 126.860 9.897 132.142 10.103 137.309 10.342 142.359 10.574 147.256 10.799 152.090 11.017 156.768 11.228 161.319 11.432 165.743 12.159 185.957 13.141 203.109 13.796 217457 14141 229.322 14.791 239.00 15.160 246.945 15.461 253.327 15.706 258.453 ISO 262 519 16062 265.810 16.189 268395 16.290 270.437 16.371 272.047 Present Worth Factor Find P Given A P/A 0.943 1.833 2.673 3465 4.212 4917 5.582 6.210 6.802 7.360 7.887 8.384 3 9.295 9.212 10.106 10477 10.828 11.15 11.470 11.764 12.042 12.303 12550 12.783 13.003 13.211 13.406 13.591 13.765 13.929 14.084 14.2.30 14.368 14.498 15.046 15.456 15.762 15.991 16 161 16.289 16,385 16.456 16 500 16549 16.379 16.601 16.618 2775 21 22 23 24 25 24 ANA 27 28 29 30 31 32 33 34 35 40 8110 0110 COLO 30 31 32 U 34 35 JO 45 50 55 60 55 60 00960 00897 00646 00470 00344 .00254 00188 00139 00103 00077 00057 00043 00032 00034 DOIS 70 75 80 70 75 85 95 100 95 tod
