Homework Answers
AW of Flownator = -30144 * (A/P, 8%, 11) - 9652 - 581 * (A/G, 8%, 11) - 6721 * (P/F, 8%, 4)*(A/P, 8%, 11) + 19765 + 9056 * (A/F, 8%, 11)
= -30144 *0.140076 - 9652 - 581 *4.239503 - 6721 *0.428883*0.140076 + 19765 + 9056 *0.060076
= -4222.45 – 9652 – 2463.15 – 403.77 + 19765 + 544.04
= 3567.67
Let the salvage value of Yoggoo300 be S, then
Present value of all annual expenses = 3809*4 / (1+0.08) = 14107.41
AW of YogGoo300 = -20829 * (A/P, 8%, 4) – 14107.41* (A/P, 8%, 4) + 11170 + S *(A/F, 8%, 4)
= -20829 *0.301921 – 14107.41*0.301921 + 11170 + S*0.221921
= -6288.71 – 4259.32 + 11170 + S*0.221921
= 621.97 + S *0.221921
As per condition given in question
621.97 + S *0.221921 = 3567.67
S = (3567.67 – 621.97) / 0.221921 = 13273.64~ 13274(Nearest Dollar)
To Calculate Factors please use below formula in MS excel and put value of “i” and “n” to get desired results: -
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