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A machine was purchased and installed in the beginning of year 2019. The estimated cost in...

A machine was purchased and installed in the beginning of year 2019. The estimated cost in the period stated dollars is below. The costs are in current period dollars at the end of the year. For example, 2020 cost is reported in end of year 2020 dollars. An inflation rate applicable to years 2020 and higher of 2.85% was used in the estimation process. What is the machine's Present Worth of costs including purchase amount in 2019 dollars using a real MARR of 9.5%? NOTE: 2019 dollars are the same at beginning for purchase and end of 2019. Cost inflation begins in 2020.

Machine Purchase

2019

Operating Cost

2019

Operating Cost

2020

Operating Cost

2021

Operating Cost

2022

Operating Cost

2023

Operating Cost

2024
81,000 8,000 11,000 16,000 20,500 26,000 14,500

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jeff jeffy answered 10 months ago
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