1- A company purchased a quality control system for $48,953 which requires $7,043 per year maintenance...

1- A company purchased a quality control system for $48,953 which requires $7,043 per year maintenance fees for the first 5 years, after which the maintenance fees will increase by 12% per year for the upcoming 7 years. Determine the equivalent total present worth value of preached system during the 12 years operation at i = 15% per year.

2- For the below Cash Flow find PW using 10% interest rate.

years	$ cost
0	3,760
1	-
2	-
3	3,000.00
4	3,100.00
5	3,200.00
6	3,300.00
7	3,400.00
8	3,500.00

Expert Solution

The given data are executed in excel.

1. PW = -$102,316

2. PW = $15,358

The excel calculation are given below:

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Rahul Sunny answered 2 years ago

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