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Your company is evaluating whether to purchase an equipment or not. The initial cost is $42,162. According to your estimate, the equipment can have annual

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Your company is evaluating whether to purchase an equipment or not. The initial cost is $42,162. According to your estimate, the equipment can have annual savings of $6,325 with 0.1 possibility or have annual savings of $5,110. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $18,794 or $16,764. Given MARR = 6%, what is the expected NPV of the equipment? (10 points) 6% n I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Single Payment Compound Present Amount Worth Factor Factor Find P Given F P/F Find F Given P F/P 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 2.540 7602 9434 .8900 .8396 7921 7473 7050 6651 6274 5919 5584 5268 4970 4688 4423 4173 3936 1711 Sinking Fund Factor Find A Given F A/F 1.0000 4854 3141 2286 1774 1434 1191 1010 0870 .0759 0668 0593 0530 0476 0430 0390 0151 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.0600 5454 3741 2886 2374 2034 1791 1610 1470 1359 1268 1193 1130 1076 1030 .0990 DO Compound Amount Factor Find F Given A F/A 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491) 13.181 14.972 16,870 18.882 21.015 23.276 25.672 30 313 Present Worth Factor Find P Given A P/A 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 7,887 8.384 8.853 9.295 9.712 10.106 10.177 Arithmetic Gradient Gradient Present Worth Gradient Uniform Series Find A Given G A/G 0 0.485 0.961 1.427 1.884 2.330 2.768 3.195 3.613 4.022 4.421 4.811 5.192 5.564 5.926 6.279 6621 Find P Given G P/G 0 0.890 2.569 4.945 7.934 11.459 15.450 19.841 24.577 29.602 34.870 40.337 45.963 51.713 57.554 63.459 60 401 6% 2 3 4 6 7 9 10 11 12 13 14 15 16 17

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