Your company is planning to purchase a new loader for $21,615. If the company keeps the old loader, it will have $1,946 additional maintenance cost for the first year and increases $563 each year till the eighth year. Given the companys minimum attractive rate of return (MARR) is 6%, what is the present cost of keeping the old loader?
6% 3 4 5 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Single Payment Compound Amount Factor 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 2.693 2.854 3.026 3.207 3.400 3.604 3.820 4.049 4.292 4.549 4.822 5.112 5.418 5.743 6.088 6.453 6.841 7.251 7.686 10.286 13.765 18.420 24.650 32.988 44.145 59.076 79.057 105.796 141.578 189.464 253.545 339.300 Present Worth Factor Find P Given F P/F 9434 .8900 .8396 .7921 .7473 .7050 .6651 .6274 .5919 .5584 .5268 .4970 .4688 4423 4173 .3936 3714 3503 .3305 3118 2942 2775 .2618 .2470 .2330 .2198 2074 .1956 1846 .1741 .1643 1550 .1462 .1379 -1301 0972 0727 .0543 .0406 0303 0227 .0169 .0126 .00945 .00706 .00528 .00394 .00295 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 0354 0324 .0296 .0272 0250 0230 0213 0197 0182 .0169 0157 0146 0136 .0126 0118 0110 0103 00960 00897 00646 .00470 00344 .00254 00188 .00139 00103 00077 .00057 .00043 .00032 00024 00018 Compound Interest Factors Uniform Payment Series Capital Recovery Compound Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0600 1.000 5454 2.060 3741 3.184 2886 4.375 2374 5.637 2034 6.975 -1791 8.394 .1610 9.897 -1470 11.491 1359 13.181 .1268 14.972 1193 16.870 1130 18.882 .1076 21.015 -1030 23.276 .0990 25.672 0954 28.213 0924 30.906 0896 33.760 0872 36.786 .0850 39.993 08:30 43.392 0813 46.996 0797 50.815 0782 54.864 0769 59.156 0757 63.706 0746 68.528 0736 73.640 0726 79.058 .0718 84.801 .0710 90.890 .0703 97.343 .0696 104.184 .0690 111.435 .0665 154.762 .0647 212.743 .0634 290.335 .0625 394.171 .0619 533.126 .0614 719.080 .0610 967.928 .0608 0606 0604 .0603 .0602 .0602 1300.9 1746.6 2343.0 3141.1 4 209.1 5638.3 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 10.477 10.828 11.158 11.470 11.764 12.042 12.303 12.550 12.783 13.003 13.211 13.406 13.591 13.765 13.929 14.084 14.230 14.368 14.498 15.046 15.456 15.762 15.991 16.161 16.289 16.385 16.456 16.509 16.549 16.579 16.601 16.618 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/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 6.960 7.287 7.605 7.915 8.217 8.510 8.795 9.072 9.341 9.603 9.857 10.103 10.342 10.574 10.799 11.017 11.228 11.432 12.359 13.141 13.796 14.341 14.791 15.160 15.461 15.706 15.903 16.062 16,189 16.290 16,371 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 69.401 75.357 81.306 87.230 93.113 98.941 104.700 110.381 115.973 121.468 126.860 132.142 137.309 142.359 147.286 152.090 156.768 161.319 165.743 185.957 203.109 217.457 229.322 239.043 246.945 253.327 258.453 262.549 265.810 268.395 270.437 272.047 6% n 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 40 45 50 55 60 65 70 75 80 85 90 95 100
