Your fim is thinking about investing S200.000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter Relevant epenses wil be $10.000 in year one and will increase by $5.000 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $9,000 What is the annual equivalent worth of the manufacturing cell if the MARR is 8% per year? Click the icon to view the interest and annulty table for discrete compounding when the MARR is 8% per year. The annual equivalent worth of the manufacturing cell is S (Round to the nearest dollar)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
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Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter Relevant expenses will be $10.000 in vear
one and will increase by $5,000 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $9.000. What is the annual equivalent worth of the manufacturing cell if the MARR is 8% per year?
A Click the icon to view the interest and annulty table for discrete compounding when the MARR is 8% per year.
The annual equivalent worth of the manufacturing cell is S (Round to the nearest dollar)
Enter your anower in the answer box
Transcribed Image Text:Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter Relevant expenses will be $10.000 in vear one and will increase by $5,000 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $9.000. What is the annual equivalent worth of the manufacturing cell if the MARR is 8% per year? A Click the icon to view the interest and annulty table for discrete compounding when the MARR is 8% per year. The annual equivalent worth of the manufacturing cell is S (Round to the nearest dollar) Enter your anower in the answer box
tuing
Discreto Compounding; i-8%
Uniform Series
Uniform Gradient
Conton
Ans
Sinking
Find
Gradient
Uniform
Presont
Morh Fector
lO Find P
Giyn A
Capital
Recovery
Factor
No Find A
Gradient
Present
Worth Factor
Series
Factor
To FidT
Givet
Factor
To Find A
Given G
A/G
To Fiad A
To Find P
Given G
N.
PIG
1
1.0800
0 9259
08573
0.7938
0.7350
0.6806
0 6302
0.5835
10000
2 CE00
0 9259
1.7833
1.0000
0 4808
0 3080
0/2219
01705
0 1363
0.1121
O 0940
10800
0 5608
0.3880
0.0000
0.0000
1.1664
0.8573
0.4808
3
1.2597
3 2464
2.5771
2.4450
0.9487
4.
1.3605
4.5061
5 3666
73369
8.9228
10 6366
12.4876
14. 4866
3.3121
3.9927
46229
52064
5.7466
6 2469
6.7101
0/3019
4.6501
7.3724
10.5233
1.4040
0 2505
0.2163
1.4693
1.8465
1.5869
2.2763
1.7138
01921
0.1740
0.1601
14.0242
2.6937
8.
1.8509
0.5403
0.5002
0.4632
17.8061
3.0985
6.
1.9990
21.8081
3.4910
10
2.1589
.0690
0.1490
25.9768
3.8713
Print
Done
DOx.
Transcribed Image Text:tuing Discreto Compounding; i-8% Uniform Series Uniform Gradient Conton Ans Sinking Find Gradient Uniform Presont Morh Fector lO Find P Giyn A Capital Recovery Factor No Find A Gradient Present Worth Factor Series Factor To FidT Givet Factor To Find A Given G A/G To Fiad A To Find P Given G N. PIG 1 1.0800 0 9259 08573 0.7938 0.7350 0.6806 0 6302 0.5835 10000 2 CE00 0 9259 1.7833 1.0000 0 4808 0 3080 0/2219 01705 0 1363 0.1121 O 0940 10800 0 5608 0.3880 0.0000 0.0000 1.1664 0.8573 0.4808 3 1.2597 3 2464 2.5771 2.4450 0.9487 4. 1.3605 4.5061 5 3666 73369 8.9228 10 6366 12.4876 14. 4866 3.3121 3.9927 46229 52064 5.7466 6 2469 6.7101 0/3019 4.6501 7.3724 10.5233 1.4040 0 2505 0.2163 1.4693 1.8465 1.5869 2.2763 1.7138 01921 0.1740 0.1601 14.0242 2.6937 8. 1.8509 0.5403 0.5002 0.4632 17.8061 3.0985 6. 1.9990 21.8081 3.4910 10 2.1589 .0690 0.1490 25.9768 3.8713 Print Done DOx.
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