In: Economics
1- A company purchased a quality control system for $45,410 which requires $9,561 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 | 2,955 |
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 |
The given data is executed in an excel:
1. Equivalent total present worth = -$107,438
2. PW = $14,554
The excel calculation and formula used are shown below:
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