Gradebook ORION Downloadable eTextbook ent S:58 PM / Remainings: 10 min Brief Ex
ID: 2548977 • Letter: G
Question
Gradebook ORION Downloadable eTextbook ent S:58 PM / Remainings: 10 min Brief Exercise 135 Find the present value of an investment in equipment if it is expected to provide annual savings of $35,000 for 10 years and to have a resale value of $57,000 at the end of thet period. Assume an rate of 15% and that savings are realized at year end. (Round factor values to 5 decinal places, eg, 1.25125 and final answer to O decinal places, eg. 4sa,S81.) (Use the below tables.) PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 91743 1.75911 2.53130 1.78326 173554 2.48685 3.16986 2.44371 3.10245 1.69005 2.40183 3.03735 162571 2.28323 3.31213 3.99271 3.88065 79079 60 0478 335216 37844 4.23054 4.71220 5.14012 53705 5 88923 5.20637 5.74684 4.56376 416042 4 48732 4.86842 5 33493 5.75002 14457 496764 5.32825 6.71008 6.41766 5.85022 501877 7.13896 7.53608 90378 6.4950620652 593770 52337 6.81369 7.10336 7.36660 7.60008 19437542062 5.58315 5 72448 81086584737 .492366 6 74987 7.16073 7 48690 7.78615 8 06069 97399 831256 7.8237 865137 8 02155 7 54879 24907 7 36578 1893718 7 63929 8 96012 8.36492 Control Panel Tis PCExplanation / Answer
Answer
Present value of Investment:
= (PVAFof 15%, 10 * Annual savings) + ( PVF of 15%,10 * Resale value)
=35000*5.01877 + 57000*0.24696
=175656.95+14076.72
=189733.67
=189734
Hence present value of an investment is 189734.
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