Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

tements Your company is evaluating whether to purchase an equipment or not. The initial cost is $41,238. According to your estimate, the equipment can

image text in transcribed

tements Your company is evaluating whether to purchase an equipment or not. The initial cost is $41,238. According to your estimate, the equipment can have annual savings of $6,005 with 0.1 possibility or have annual savings of $5,289. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $18,572 or $15,475. Given MARR-6%, what is the expected NPV of the equipment? Compound Interest Factors Single Payment Uniform Payment Series Arithmetic Gradient ons ents Compound Present Sinking Capital Compound Present Gradient Gradient Amount Worth Fund Recovery Amount Worth Uniform Present Factor Factor Factor Factor Factor Factor Series Worth Find F Find P Find A Find A Find F Find P Find A Find P Given P Given F Given F Given P Given A Given A Given G Given G PF A/F A/P FIA PIA A/G PIG 1060 9434 10000 1.0600 1,000 0,943 0 0 2 1.124 8900 4854 5454 2.060 1.833 0.485 0.890 1.191 8396 3141 3741 3.484 2.673 0.901 2360 1.262 7921 2286 2886 4.375 3,465 1427 4.945 1.338 3473 1774 2374 5637 4212 1.4 7.934 6 1419 7050 1434 2034 6975 4917 2.330 11.459 Jock 7 1.504 6651 1191 1791 8394 3.382 2.768 15.450 1.394 6274 1010 1610 9.897 6.210 3.195 19.841 1.689 3919 0870 1470 11.491 6.802 3.613 24.577 VHLCentral 10 1.791 5584 0799 1359 13.181 7.360 4.022 29.602 10 1.898 5268 0668 1268 14.972 7.887 4421 34.870 " 12 2012 4970 0593 1193 16.870 8.384 4.811 40.337 12 13 2.133 0530 1130 18.882 8.853 5.192 45.963 13 14 2261 4423 0476 1076 21.015 9.295 5364 51.713 14 15 2.397 4173 0430 1030 23.236 9712 5926 57.554 15 16 2.540 3936 0390 0990 25.672 10.106 6.279 63.459 16 17 2.693 3714 0354 0954 28213 10.477 6.624 69.401 17 2854 3501 0324 0934 30.906 10.828 6.960 75.357 19 3.026 3305 0296 0896 33.760 11.158 7.287 81.306 19 20 3.207 3118 0272 0872 36.786 11.470 7.605 87.230 20 21 3.400 2942 0250 0850 39.993 11.764 7.915 93.113 21 22 3604 2775 0230 0830 43.392 12.042 217 98941 22 23 3.820 2618 0213 0813 46.996 12.303 8.510 104,700 23 24 4.049 2470 0197 0701 50.815 12550 8.795 110381 24 25 4.292 2330 0182 54.864 12783 9.072 115.973 25 26 4.549 2198 0169 0769 59.156 13.003 9.341 121,468 26 27 4.822 2074 0157 0757 63.706 13.211 9.601 126360 27 2 5.112 1956 0146 0746 68.528 13406 9.857 132.142 28 29 5418 1846 0136 0736 73.640 13591 10.103 137.309 29 30 5.743 1741 0126 0936 79 058 13765 10.342 142.359 30 31 6.068 1643 OF 20718 84301 13929 10.574 147286 31 32 6453 1550 0110 0710 90.890 14.084 10.799 152090 32 33 6.341 1462 0103 0203 97.343 14.230 11.017 156.768 3 34 7.251 1379 00%60 0696 OLTRA H368 11.228 161.319 34 38 7.086 1301 0690 111435 14498 11.432 165.743 35 40 10286 0972 00646 0665 154762 15.046 12.359 45 185.957 40 13.765 0727 00470 0647 212.743 15.456 13.141 30 22S52232828 203.109 45 18420 0543) 00344 0634 290335 15.762 13.796 217457 50 24.650 0406 00254 0625 39417 15991 14.341 229.322 55 32.988 01303 0619 533126 16.161 14.791 239.043 60 44.145 0227 00199 0614 71900 16289 15.160 246.945 65 59 076 0169 00103 0610 967.928 16.385 15.461 253.327 79.057 0126 00077 70 0608 13009 16.456 15.706 258453 75 105796 00945 00057 0606 17466 16509 15.900 262.549 80 141576 00706 00043 0604 23430 16.349 16.062 265810 KE 189464 00528 00002 0603 3141.1 16379 16.189 268.395 90 253.545 00394 00024 0602 42091 16.601 16.290 270,437 100 33900 95 00295 0001 0602 36383 16618 16371 272047 100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

ISE Real Estate Finance And Investments

Authors: Jeffrey Fisher William B. Brueggeman

17th International Edition

1264892888, 9781264892884

Students also viewed these Accounting questions

Question

Construct a dotplot for the data in Exercise 11.

Answered: 1 week ago