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Styles Paragraph TABLE 8.2 Present Value Calculation Ajax ($1000) Future/ Annual Value Blaylock ($1000) Future/ Annual Present Value Value Present Value 30.00 Initial cost Rebuilding
Styles Paragraph TABLE 8.2 Present Value Calculation Ajax ($1000) Future/ Annual Value Blaylock ($1000) Future/ Annual Present Value Value Present Value 30.00 Initial cost Rebuilding at end of 3rd year 20.00 1.73 3.00 Salvage value -4.00 -1.61 Maintenance 1.00 2.99 2.00 5.98 Productivity benefit -0.50 -1.50 - 1 - Electricity 3.00 9.75 3.50 11.37 Total present value of costs 39.63 39.08 1. Draw the cash-flow diagram for Ajax (only) motor showing the following: a. Uniform maintenance cost. b. Uniform productivity benefit. c. Salvage value for Ajax at the end of the 5th year 2. Then show all steps and equations used to obtain the present value for each of the above "a-c
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