Question
Susies appliances at home are outdated so she purchases a vacuum for 7688 and an oven for 7230. The total saved with electricity consumption is
Susies appliances at home are outdated so she purchases a vacuum for 7688 and an oven for 7230. The total saved with electricity consumption is 855 per quarter. Servicing costs 600 every 6 months. Major servicing required every two years costs 2500 each time. The machines are expected to last 8 years, then they will be resold at 6000 total. She estimates a quarterly income of 450 if she rents her appliances to her neighbours. Assume the capital is valued at 14.7% per annum compounded quarterly.
Calculate the Net Present Value. Include a table with period, income, expenditure and cash flow.
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