Question
In: Accounting
In a PCB factory, a plating line was bought 6 years ago for $300,040. Since it...
In a PCB factory, a plating line was bought 6 years ago for $300,040. Since it caught fire last night, its life span is much shortened and remains for only 1 more year from now. There would be no salvage value. (Round off your final answers to 2 decimal places)
Since the fire suddenly shortened the life span of the plating line, the engineer wants to migrate the risk by subscribing a special Refitting Service Plan so that the life span of the new plating line can be extended to 10 years. The first annual refitting service charge $15,000 will be paid at the Day 1 of purchasing the new equipment. As the equipment ages, this charge is expected to be increasing at $1,504 every year. The MARR is 10% per annum.
[NOTE: Year 0 is today; Year 1 is Day 1 of purchasing the new equipment]
How much would be the total Refitting Service charges discounted back to the Day 1 of purchasing the new equipment?
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ekkarill92 answered 1 year agoRelated Solutions
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