Work out the calculations for book problem 17.21. Use these tables to help setup the problem.

What is the present equivalent value of Configuration A?

What is the present equivalent value of Configuration B?

What is the present equivalent value of Configuration C?

Cost by Program Year ($) 5 6 Total Cost ($) 1 2 3 4 7 8 9 10 9.875 1,975 3,240 19,750 3,950 6,480 19,750 3,950 6,480 19,750 3,950 6,480 19.750 3,950 6.480 19,750 3,950 6.480 19,750 3,950 6,480 19.750 3,950 6,480 19,750 3,950 6.480 19,750 3,950 6,480 187,625 37,525 61,560 1,300 16,390 Evaluation Category Configuration A 1. Manufacturing Cost 2. Distribution Cost 3. Operating Cost 4. Maintenance Cost a. Scheduled b. Unscheduled Total Cost Configuration B 1. Manufacturing Cost 2. Distribution Cost 3. Operating Cost 4. Maintenance Cost a. Scheduled b. Unscheduled Total Cost Configuration "C" 1. Manufacturing Cost 2. Distribution Cost 3. Operating Cost Maintenance Cost a. Scheduled b. Unscheduled Total Cost 7,875 2,625 648 500 1,200 12,848 10,000 2.500 540 800 1.238 15,078 Problem 21 Table 2. Evaluation of alternative configurations for the BAF Corporation. Configuration A Configuration C Program year, n (P/F, 10%,n) Revenues ($) Configuration B Revenues Cost ($) ($) Cost ($) Revenues ($) Cost ($) 0 1.0000 15,000 28,000 23,000 1 0.9091 35,910 14,900 47,228 11,680 45,455 13,707 2 0.8265 65,294 27,093 86,783 20,824 82,650 24,262 3 5 6 7. 8 9 10 Salvage Totals Cost by Program Year ($) 5 6 Total Cost ($) 1 2 3 4 7 8 9 10 9.875 1,975 3,240 19,750 3,950 6,480 19,750 3,950 6,480 19,750 3,950 6,480 19.750 3,950 6.480 19,750 3,950 6.480 19,750 3,950 6,480 19.750 3,950 6,480 19,750 3,950 6.480 19,750 3,950 6,480 187,625 37,525 61,560 1,300 16,390 Evaluation Category Configuration A 1. Manufacturing Cost 2. Distribution Cost 3. Operating Cost 4. Maintenance Cost a. Scheduled b. Unscheduled Total Cost Configuration B 1. Manufacturing Cost 2. Distribution Cost 3. Operating Cost 4. Maintenance Cost a. Scheduled b. Unscheduled Total Cost Configuration "C" 1. Manufacturing Cost 2. Distribution Cost 3. Operating Cost Maintenance Cost a. Scheduled b. Unscheduled Total Cost 7,875 2,625 648 500 1,200 12,848 10,000 2.500 540 800 1.238 15,078 Problem 21 Table 2. Evaluation of alternative configurations for the BAF Corporation. Configuration A Configuration C Program year, n (P/F, 10%,n) Revenues ($) Configuration B Revenues Cost ($) ($) Cost ($) Revenues ($) Cost ($) 0 1.0000 15,000 28,000 23,000 1 0.9091 35,910 14,900 47,228 11,680 45,455 13,707 2 0.8265 65,294 27,093 86,783 20,824 82,650 24,262 3 5 6 7. 8 9 10 Salvage Totals