Your company is planning to purchase a new loader for $20,937. If the company keeps the old loader, it will have $1,959 additional maintenance cost for the first year and increases $308 each year till the eighth year. Given the company's minimum attractive rate of return (MARR) is 6%, what is the present cost of keeping the old loader?

 

6% n 1 2 3 4 5 6 7 8 9 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 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 Factor Find A Given P A/P 1.0600 .5454 .3741 .2886 2374 2034 .1791 .1610 .1470 1359 .1268 .1193 1130 .1076 .1030 0990 .0954 .0924 .0896 0872 .0850 .0830 .0813 .0797 0782 .0769 .0757 .0746 .0736 .0726 0718 .0710 0703 .0696 .0690 .0665 .0647 .0634 .0625 .0619 .0614 .0610 .0608 .0606 .0604 .0603 .0602 .0602 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 28.213 30.906 33.760 36.786 39.993 43.392 46.996 50.815 54.864 59.156 63.706 68.528 73.640 79.058 84.801 90.890 97.343 104.184 111.435 154.762 212.743 290.335 394.171 533.126 719.080 967.928 1300.9 1746.6 2 343.0 3 141.1 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 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 6.624 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 Present Worth 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 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 1 2 3 4 5 6 7 8 9 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