$66,000 Initial Cost $80,00 Benefits/yr $8,000 for the next 10 years $12.000 for

Question

$66,000 Initial Cost $80,00 Benefits/yr $8,000 for the next 10 years $12.000 for the first 10 years & $9,000 per year for 20 years 20 years Life Salvage Value MARR a. The NPW of machine X is? $30,000 $20,000 10.0% Answer format s xxxx Answer 17146 Subject: NPW of Cash Flows Philipp inc a German company ia considering the folowing two equipment altemativea for the plant in Tennessee b If the MARR for machine Y is 10%, then the NPW of machine is? Anower format $ xxxcx Answer. 13594 Subject: NPW of Cash Flows Philpp ine s German company is considering the foiowing two equipment altematives for the plant in Tennssee C. ir machine·Y' has no salvage value, then what would be the NPW or machine (The MARR is 10%) Answer format: s xxxx Answer Complex Annuity Compute the net present worth (NPW) of the cash flows descibed in table below for inve

Explanation / Answer

a). Net Present Worth of X = -$80000 + ($12000*6.1445 + $8000*2.369) + $30000*0.1486

= -$80000 + ($73734 + $18952) + $4458

= -$80000 + $97144

= $17144

b). Net Present Worth of Y = -$66000 + $9000*8.5136 + $20000*0.1486

= -$66000 + $76622 + $2972

= $13594

c). Net Present Worth of Y (No Salvage Value) = -$66000 + $9000*8.5136

= -$66000 + $76622

= $10622

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