problems 5 - 7... please use the formulas from engineering economics 5. Calculat

Question

problems 5 - 7...
please use the formulas from engineering economics

5. Calculate the present worth of all costs for a newly acquired machine with an initial cost of $40,000, no trade-in value, a life of 13 years, and an annual operating cost of $15,000 for the first 4 years, increasing by 10% per year thereafter, use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be $ 6. For the cash flows shown in the diagram, determine the value of x and 2x that will make the future worth in year 10 equal to $100,000.

Explanation / Answer

5.

present worth of all costs

=40000+15000/(1+10%)^1+15000/(1+10%)^2+15000/(1+10%)^3+15000/(1+10%)^4+(15000*(1+10%)^1)/(1+10%)^5+(15000*(1+10%)^2)/(1+10%)^6+(15000*(1+10%)^3)/(1+10%)^7+(15000*(1+10%)^4)/(1+10%)^8+(15000*(1+10%)^5)/(1+10%)^9+(15000*(1+10%)^6)/(1+10%)^10+(15000*(1+10%)^7)/(1+10%)^11+(15000*(1+10%)^8)/(1+10%)^12+(15000*(1+10%)^9)/(1+10%)^13

=179754.80

the above is answer..

we do only one question based on Chegg rule

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