The production manager of a manufacturing firm has tracked the average repair and maintenance cost of a machine for 10 years. Cost averages were steady at 20 000 TL for the first five ycars, but have increased consistently by 5 000 TL for each of the last 5 years. Use cash flow distributions’ (uniform series; arithmetic gradient series; geometric gradient series) formulations/table values. | = 6% per year 1 6 7 8 10 25 000 A = 20 000 30 000 35 000 40 000 45 000 The equivalent present worth (PW) of the cash flow (costs) given in the above figure is equal to ... The equivalent annual worth (AW) of the cash flow (costs) given in the above figure is equal to SOLUTION: ........... ..... ...

The production manager of a manufacturing firm has tracked the average repair and maintenance cost of a machine for 10 years. Cost averages were steady at 20 000 TL for the first five ycars, but have increased consistently by 5 000 TL for each of the last 5 years. Use cash flow distributions’ (uniform series; arithmetic gradient series; geometric gradient series) formulations/table values. | = 6% per year 1 6 7 8 10 25 000 A = 20 000 30 000 35 000 40 000 45 000 The equivalent present worth (PW) of the cash flow (costs) given in the above figure is equal to ... The equivalent annual worth (AW) of the cash flow (costs) given in the above figure is equal to SOLUTION: ........... ..... ...

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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