Question
Read the question carefully: A bakery is considering replacing an oven for the bread making division. A new oven costs $20,000; the market value and
Read the question carefully:
A bakery is considering replacing an oven for the bread making division. A new oven costs $20,000; the market value and maintenance cost is presented in the table below. The MARR is 10%.
| EOY (N) | Market Value | Maintenance Cost | Capital Recovery | Equivalent Annual Maintenance Cost | Annual Equivalent Cost |
| 0 | $20,000 | ||||
| 1 | $17,000 | $9,500 | $5,000.00 | $9500.00 | $14,500.00 |
| 2 | $14,000 | $9,600 | $4,857.14 | $9,547.62 | $14,404.76 |
| 3 | $11,000 | $9,700 | X | Y | Z |
| 4 | $7,000 | $9,800 | U | V | W |
Enter your answer as follow: 123456.78
From the table above, what is the correct value for U?
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Development Finance Innovations For Sustainable Growth
Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux
1st Edition
331954165X, 978-3319541655
