"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint."

"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint."

Elements Of Electromagnetics

7th Edition

ISBN:9780190698614

Author:Sadiku, Matthew N. O.

Publisher:Sadiku, Matthew N. O.

ChapterMA: Math Assessment

Section: Chapter Questions

Problem 1.1MA

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Question

QUESTION 1

"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an
expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much
could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint."
A 105854.35
B 93234.14
159395.71
D 116424.41
E) 181780.34

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