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what is the formula used to obtain \"$8166,67 in a year\", present worth or equi

ID: 1131298 • Letter: W

Question

what is the formula used to obtain "$8166,67 in a year", present worth or equivalent uniform anual benecits? IRR=15%

cardboard sends to the landfill in each day. Therefore, The sale of cardboard per day The sale of cardboard per year =2x $95 =12x$3,800 s 190 s 45,600 To collect the cardboard will require one janitorial associate for 3 hours per day at a cost of $18.50 per hour. That means, Per day Per year "The baling equipment will cost $22,000 installed, $45 per week to operate, $4500 per year to maintain, and last 12 years. The equipment will Therefore, $ 6,750 per year $ 22,000 0th year s 5,000 12th year As per the given information, 25,000 wooden pallets are scrapped per year due to the damage or because they are mismatch to the standard size used by the plant. The plants has allotted budget of $ 12,000 for a pallet shredder to chip th pallets as they go into the waste containers. $555 , and $ 13320 have a salvage value of $5000." 8166,67 in a year 13 pounds The average weight of a pallet 1 ton 2240 pounds s 3,000/year The operation and maintenance cost (Excluding the operator and janitorial associate cost) The machine shredder has not hold any salvage value at the end of 6 years of continuous usage. Thatmeans, $12,000 in 0th year s 12,000 in 6th year

Explanation / Answer

Answer : Given,

Principle (P) = $816667; Rate of interest (r) / Interest Rate of Return (IRR) = 15% ; Time (t) = 1

The formula of present worth is following :

Amount = P * ( 1 + r/100 )t = 816667 * ( 1+ 15/100 )1 = 816667 * (1 + 0.15) = 816667 * 1.15 = 939167.05

Therefore, present worth or equivalent uniform annual benefit is $939167.05.