Please help solve the following problem using the uniform cost method. I am not

Question

Please help solve the following problem using the uniform cost method. I am not sure how to get the following values for (A/P,n,i) and (A/F,n,i). If solved please explain step by step how the problem was solved so I can understand what I am doing wrong. Explanied what each letter mean. See picture attached for problem Data. Thanks in advance.

Economic Analysis: Uniform Annual Cost Method: Data Machine Cost: $310,000 (Present) Expected Life of Machine: 15 Years Interest Rate: 10% Expenses (Maintenance & Labor of Operators): $10,000+$31,200- $41,200 Revenue: ($1,242,800-$1,100,800) $142,000 Salvage Value of Machine(s): $15,000 (Future) Uniform Annual Cost (UAC)- Annual revenue -annual expenses -cost of machines with factor - salvage value with factor UAC- $142,000-$41,200-$310,00oln, i] 1500 n,i]

Explanation / Answer

ANSWER:

standardized yearly Cost

MethodIt is a assets budget way by which the yearly money run of advantage or charge is derived.

If we are agreed twelve-monthly income or price, we get persons as it is. plus in container we are known bump sum price/advantage, persons ar rehabilitated keen on money flows for the fitting age.

If we be given the there price of a help/charge, we would gain the outlook price of the hard cash flood;

even as if potential value of a help cost is provide, we would gain the preceding epoch cash flows, to have the total cash outflow aligned to the same period.

In order to determine the cash flood of the lumpsums, we use unlike factor, as follow:feature Formulaesthe factor mention in the difficulty - [A/P,n,i] and [A/F,n,i] are equivalency formula, with the next gist and formula:[A/P,n,i] refers to the money mending cause, in which a only bulge sum recompense is well thought-out and its equal leasing annuity is designed multiply over n outlook period.

subsequent ladder call for to be follow to compute the resources upturn feature:

a) analyze (1 + i%)^n . In this box, (1 + 0.10)^15 = 4.177b) take from the over effect by

1. In this box, it is 3.177c) separate effect

(a) by effect

(b). In this box, 4.177/3.177 = 1.315

d) at the moment grow the higher than effect by the notice tempo,

i. In this case, 1.315 0.10 = 0.1315To précis, Capital upturn feature, [A/P,n,i] = [((1 + i%)^n) / (((1 + i%)^n) - 1)] i%consequently, [A/P,n,i] = 0.1315[A/F,n,i] refers to dipping subsidize feature,

where a lone lump calculation imbursement is measured in addition to its correspondent rental allowance is designed extend over n preceding period.

subsequent stepladder call for to be follow to analyze the dropping subsidize feature:a) estimate (1 + i%)^n .

In this holder, (1 + 0.10)^15 = 4.177b) take from the over product by

1. In this casing, it is 3.177c) acquire the joint of

(b), In this casing, it is 0.3148

d) Now develop the more than outcome by the awareness velocity,

i. In this casing, 0.3148 * 0.10 = 0.0315To recapitulate, reducing Fund reason, [A/F,n,i]

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