Question

Please, I need it with 30 minutes

"Machine A costs $24,000 to purchase and is worth $8,000 in 4 years at the end of its service life. Machine B costs $14,000 to purchase and is worth $2,000 in 3 years at the end of its service life. Assume that these machines are needed for 12 years (required service period). Each machine can be repurchased at the same price in the future, and assume the annual maintenance cost of each machine is negligible. Use 10% annual interest rate. What is the Present Total Cost of the machine that should be purchased? Enter your answer as a positive number."

Answer 1

Present Total Cost of the machine that should be purchased = Machine B = $31128.52

Year	Machine A	Machine B
0	-24000	-14000
1	0	0
2	0	0
3	0	-12000
4	-16000	0
5	0	0
6	0	-12000
7	0	0
8	-16000	0
9	0	-12000
10	0	0
11	0	0
12	8000	2000
Present Total cost	($36,221.17)	($31,128.52)

WORKINGS