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Year O&M cost Market Value Net Value NPV @10% NPV @15% 1 2500 12000 9500 8636.363636 8260.869565 2 3200 8100 4900 4049.586777 3705.10397 3 5300
| Year | O&M cost | Market Value | Net Value | NPV @10% | NPV @15% | |
| 1 | 2500 | 12000 | 9500 | 8636.363636 | 8260.869565 | |
| 2 | 3200 | 8100 | 4900 | 4049.586777 | 3705.10397 | |
| 3 | 5300 | 5200 | -100 | -75.13148009 | -65.75162324 | |
| 4 | 6500 | 3500 | -3000 | -2049.040366 | -1715.259737 | |
| 5 | 7800 | 0 | -7800 | -4843.18632 | -3877.978535 | |
- Economic life of the machine is 1 year for both rates. The 3 AE(15) for the machine is:
- $8610
- $7383
- $8983
- $8974
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Marketing For Financial Advisors
Authors: Eric Bradlow, Keith Niedermeier, Patti Williams
1st Edition
