Investment cost Expected life Market (salvage) value³ Proposal A $9,000 6 years - $900 Annual receipts Annual expenses $7,000 $4,000 * A negative market value means that there is a net cost to dispose of an asset. To Find P Discrete Compounding; i=12% Single Payment Compound Amount Factor To Find F Present Worth Factor Compound Amount Uniform Series Sinking Present Fund Factor Worth Factor Factor To Find F To Find P To Find A Given P Given F Given A Given A Given F Capital Recovery Factor To Find A Given P N FIP PIF FIA PIA AIF AIP 1 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 2 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 3 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 456 00 o 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 5 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 1.9738 0.5066 8.1152 4.1114 0.1232 0.2432 7 2.2107 0.4523 10.0890 4.5638 0.0991 0.2191 8 2.4760 0.4039 12.2997 4.9676 0.0813 0.2013 9 2.7731 0.3606 14.7757 5.3282 0.0677 0.1877 5407 0570 0177O
Investment cost Expected life Market (salvage) value³ Proposal A $9,000 6 years - $900 Annual receipts Annual expenses $7,000 $4,000 * A negative market value means that there is a net cost to dispose of an asset. To Find P Discrete Compounding; i=12% Single Payment Compound Amount Factor To Find F Present Worth Factor Compound Amount Uniform Series Sinking Present Fund Factor Worth Factor Factor To Find F To Find P To Find A Given P Given F Given A Given A Given F Capital Recovery Factor To Find A Given P N FIP PIF FIA PIA AIF AIP 1 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 2 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 3 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 456 00 o 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 5 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 1.9738 0.5066 8.1152 4.1114 0.1232 0.2432 7 2.2107 0.4523 10.0890 4.5638 0.0991 0.2191 8 2.4760 0.4039 12.2997 4.9676 0.0813 0.2013 9 2.7731 0.3606 14.7757 5.3282 0.0677 0.1877 5407 0570 0177O
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
Related questions
Question
Determine the FW of the following engineering project when the MARR is 12% per year. Is the project acceptable?
Transcribed Image Text:Investment cost
Expected life
Market (salvage) value³
Proposal A
$9,000
6 years
- $900
Annual receipts
Annual expenses
$7,000
$4,000
* A negative market value means that there is a net cost to dispose of an asset.
Transcribed Image Text:To Find P
Discrete Compounding; i=12%
Single Payment
Compound
Amount
Factor
To Find F
Present
Worth Factor
Compound
Amount
Uniform Series
Sinking
Present
Fund
Factor
Worth Factor
Factor
To Find F
To Find P
To Find A
Given P
Given F
Given A
Given A
Given F
Capital
Recovery
Factor
To Find A
Given P
N
FIP
PIF
FIA
PIA
AIF
AIP
1
1.1200
0.8929
1.0000
0.8929
1.0000
1.1200
2
1.2544
0.7972
2.1200
1.6901
0.4717
0.5917
3
1.4049
0.7118
3.3744
2.4018
0.2963
0.4163
456 00 o
1.5735
0.6355
4.7793
3.0373
0.2092
0.3292
5
1.7623
0.5674
6.3528
3.6048
0.1574
0.2774
1.9738
0.5066
8.1152
4.1114
0.1232
0.2432
7
2.2107
0.4523
10.0890
4.5638
0.0991
0.2191
8
2.4760
0.4039
12.2997
4.9676
0.0813
0.2013
9
2.7731
0.3606
14.7757
5.3282
0.0677
0.1877
5407
0570
0177O
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