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Question 7 Buy machinery with 120.000, Salvage with 40,000 after 20 years, and; with a yearly maintenance cost of 5000 and yearly benefit of 10,000.

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Question 7 Buy machinery with 120.000, Salvage with 40,000 after 20 years, and; with a yearly maintenance cost of 5000 and yearly benefit of 10,000. What is the NPV? Int. rate - 8% A -120,000 - 5.000 (P/A, 8%, 20) + 40,000 (P/F 8%, 20)+10,000 8.120,000 + 5,000 (A/P, 8%, 20) + 40,000 (P/F, 8%, 20) C-120,000 + 40,000 (P/F, 8%, 20) +5,000 (P/A, 8%, 20) D. 40,000 (F/P 8%. 20) - 5,000 (P/A, 8%, 20) + 10,000(A/P,8%,20) - 120,000

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