5 NPW of Cash Flows aer saved Philipp Inc, a German company is considering the f
ID: 2785688 • Letter: 5
Question
5 NPW of Cash Flows aer saved Philipp Inc, a German company is considering the following two equipment alternatives for their plant in Tennessee. The cost information for those two machines (which are under consideration) is given in table below ked out of itial Cost $80,000 $12,000 for the first 10 years &$9,000 per year efits/r s8,000 for the next 10 years for 20 years 20 years salvage$30,000 Value MARR a. The NPW of machine X is? $20,000 10.0% Answer format S xxx Answer. 13594 stion 6 er saved ed out of Subject: NPW of Cash Flows b. If the MARR for machine Y is 10%, then the NPW of machine Y is? ewer format: $Explanation / Answer
M/C X M/C Y Initial cost 80,000 66,000 Benefit1-10 12,000 9,000 Discount Factor 6.1445671 6.1445671 PV of 1-10 Year (A) 73,735 55,301 Benefit 11-20 8,000 9,000 Discount Factor 2.3689966 2.3689966 Pv of 11-20 Year (B) 18,952 21,321 Salvage Value 30,000 20,000 Discount factor 0.1486436 0.1486436 PV of Salvage Value(C ) 4,459 2,973 Total PV of Inflow=A+B+C 97,146 79,595 Less: Initial Cost (80,000) (66,000) NPW 17,146 13,595 MARR 10% 10% 1/(1+.1)^n Year Discount Factor 1 0.909090909 2 0.826446281 3 0.751314801 4 0.683013455 5 0.620921323 6 0.56447393 7 0.513158118 8 0.46650738 9 0.424097618 10 0.385543289 6.1445671 11 0.350493899 12 0.318630818 13 0.28966438 14 0.263331254 15 0.239392049 16 0.217629136 17 0.197844669 18 0.17985879 19 0.163507991 20 0.148643628 2.3689966
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.