Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solve clearly 2. The cost estimates for two machines are under consideration. The Can-Do construction company wants the economic evaluation done over a 6-year period

Solve clearly

image text in transcribed
2. The cost estimates for two machines are under consideration. The Can-Do construction company wants the economic evaluation done over a 6-year period at an interest rate of 8% per year. The present worth of machine A is closest to: A B First Cost, $ Bel Che-75,000 -85,000 Annual cost, $/yr -2,500 -2,000 Salvage value after 6 years, $ 12,000 13,000 small (a) Less than $-77,250 (b) $-77, 543 (c) $-78,994 (d) $-80,315 (e) $$-82,765 (f) More than $-83,000 3. A small dam will cost $15,000,000 to build, $700,000 per year to maintain, and it will have to be replaced every 40 years. At an interest rate of 8% per year, the perpetual equivalent annual worth is closest to: (a) $-1,200,000 (b) $-1,256,000 (c) $-1,357,900 (d) $-1,900,900 (e) $-1,957,900 (f) More than $-2,000,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Macroeconomics

Authors: Lee Coppock, Dirk Mateer

2nd Edition

0393614093, 9780393614091

More Books

Students also viewed these Economics questions

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago