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Your company is evaluating whether to purchase an equipment or not. The initial cost is $49,138. According to your estimate, the equipment can have
Your company is evaluating whether to purchase an equipment or not. The initial cost is $49,138. According to your estimate, the equipment can have annual savings of $6,630 with 0.1 possibility or have annual savings of $5,726. The useful life of the equipment is 10 years, and with equal chance to have a salvage value of $18,677 or $15,220. Given MARR = 6%, what is the expected NPV of the equipment? 6% Compound Interest Factors Single Payment Uniform Payment Series Arithmetic Gradient Compound Amount Present Sinking Worth Capital Compound Present Gradient Fund Recovery Amount Worth Uniform Factor Factor Factor Factor Factor Factor Series Gradient Present 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 n F/P P/F A/F A/P F/A P/A A/G P/G " 1 1.060 9434 1.0000 1.0600 1.000 0.943 0 0 I 2 1.124 8900 4854 5454 2.060 1.833 0.485 0.890 2 3 1.191 .8396 3141 3741 3.184 2.673 0.961 2.569 3 4 1.262 .7921 2286 2886 4.375 3.465 1.427 4.945 5 1.338 .7473 .1774 2374 5.637 4.212 1.884 7.934 5 6 1.419 .7050 .1434 2034 6.975 4.917 2.330 11.459 6 7 1.504 .6651 1191 1791 8.394 5.582 2.768 15.450 7 8 1.594 6274 .1010 1610 9.897 6.210 3.195 19.841 8 9 1.689 5919 .0870 1470 11.491 6.802 3.613 24.577 9 10 1.791 5584 0759 1359 13.181 7.360 4.022 29.602 10 11 1.898 5268 .06681 1268 14.972 7.887 4.421 34.870 11 12 2.012 4970 0593 1193 16.870 8.384 4.811 40.337 12 13 2.133 4688 .0530 11307 18.882 8.853 5.192 45.963 13 14 2.261 4423 .0476 1076 21.015 9.295 5.564 51.713 14 15 2.397 4173 0430 1030 23.276 9.712 5.926 57.554 15 16. 2.540 3936 0390 0990 25.672 10.106 6.279 63.459 16
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