Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 1 35,000 45,000 2 20,000 47,500 15,000 50,000 4 2,000 53,500 O 63,256 O 69.289 68,476 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. 65,765 64,332 67,428 O 66,256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 1 O 2 3 O 4

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Question 5
Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2.
M&O cost
Retention Yr.
Market Value
per year
O (First Cost) 55,000
35,000
45.000
20,000
47,500
3
15,000
50,000
2,000
53,500
O 63,256
O 69.289
O 68,476
O 67,854
Question 6
Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3.
O 65,765
O 64,332
O 67,428
O 66.256
Question 7
Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine?
O 1
O 2
O 3
O 4
Transcribed Image Text:Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 35,000 45.000 20,000 47,500 3 15,000 50,000 2,000 53,500 O 63,256 O 69.289 O 68,476 O 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 65,765 O 64,332 O 67,428 O 66.256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? O 1 O 2 O 3 O 4
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Capitalized Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education