Remaining Time: 1 hour, 29 minutes, 24 seconds. y Question Completion Status: Mo

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Remaining Time: 1 hour, 29 minutes, 24 seconds. y Question Completion Status: Moving to another question will save this response. Question 2 of 6 Question 2 3.00000 points Save Answer A new equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. The investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. If MARR s 10%, s investing in this equipment feasible? Use annual worth method. Attach File Browse My Computer Browse Content Collection Moving to another question will save this response. Question 2 of 6 7 8 9

Explanation / Answer

Annual Inflows 10000 Annuity PVF @ 10% for 5 years 3.7908 Present value of inflows 37908 Add: Present value of salvage 3105 ($ 5000* 0.621) Present value of inflows 41013 Less: Initial investment 25000 Net Present value 16013 Divide: Annuity factor 3.7908 Annualised Present worth 4224

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