A company is considering buying one of the following two computers. Computer Computer B Initial Cost $7,289.55 $10,140.97 Salvage Value $2,450.22 $2,567.86 Useful Life 10 years 13 years 403.92 $1.082.15 (Year 1 to 8) Annual year 1 to. Maintenance 10 $209.93 (Year 9 to 13) Interest Rate 10% 10% What is the present worth of the costs for computer B?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A company is considering buying one of the following two computers.
Computer
Computer B
A
Initial Cost
$7.289.55 $10,140.97
Salvage Value S2,450.22
$2,567.86
Useful Life
10 years
13 years
403.92
Annual
$1.082.15
year 1 to
Maintenance
(Year 1 to 8)
10
$209.93
(Year 9 to
13)
Interest Rate
10%
10%
Whatis the present worth of the costs for computer B?
Transcribed Image Text:A company is considering buying one of the following two computers. Computer Computer B A Initial Cost $7.289.55 $10,140.97 Salvage Value S2,450.22 $2,567.86 Useful Life 10 years 13 years 403.92 Annual $1.082.15 year 1 to Maintenance (Year 1 to 8) 10 $209.93 (Year 9 to 13) Interest Rate 10% 10% Whatis the present worth of the costs for computer B?
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