Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10% per year. Relevant costs are as follows Machine XYZ Investment cost $18,000 Useful life 20 years Market value $5,000 Annual operating expenses $250 Overhead cost-end of 7th year $500

Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10% per year. Relevant costs are as follows Machine XYZ Investment cost $18,000 Useful life 20 years Market value $5,000 Annual operating expenses $250 Overhead cost-end of 7th year $500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10% per
year. Relevant costs are as follows
Machine XYZ
Investment cost
$18,000
Useful life
20 years
Market value
$5,000
Annual operating expenses
$250
Overhead cost-end of 7th year
$500
Overhead cost-end of 14th year
$800

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