Question

can you detail explain how solved: "is just to practice" and make sure I have the same answer

is from the economy for engineer and scientists

You are deputy chief of the Space Federation Force (SFF), which means you do whatever the chief of the SFF says. She says you evaluate at 10% per year unless told otherwise.

Space Fuel Inc. is considering establishing a new propellant depot to provide space vehicles a refueling point in their trek to Mars. If placed in a LaGrange point, the depot could save $50,000K annually. The depot can be constructed for $200,000K today and will be used for a period of 10 years. It has a salvage value of $10,000K at the end of its useful life. The new depot will require an annual maintenance cost of $9,000K. Capital financing is available at _3__% per quarter compounded yearly

What is PW

Answer 1

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Space Fuel Inc.	Amount $
Investment	200,000.00	A
Life (Years)	10.00
Quarterly Rate	3%
Yearly Rate	12%	1 year has 4 quarters. So Yearly rate= Quarterly rate* 4.
Annual savings	50,000.00	B
Annual maintenance	9,000.00	C
Net savings	41,000.00	D=B-C
Annuity Factor at 12% for 10 years	5.65022	E
Present Value of Net savings	231,659.02	F=D*E
Salvage Value	10,000.00	G
PV Factor at 12% in 10th year	0.32197	H
PV of Salvage Value	3,219.70	I=G*H
PV of cash inflows	234,878.72	J=F+I
NPV	34,878.72	K=J-A