Upgrading to a new PLC system is estimated to save XYZ Manufacturing $2500 annually in maintenance...
Upgrading to a new PLC system is estimated to save XYZ Manufacturing $2500 annually in maintenance costs. What is the worth of those savings at the end of its lifetime at Year 6? Assume an 8% interest rate.
Homework Answers
Future worth of savings = 2500 * (F/A,8%,6)
= 2500 * 7.335929
= 18339.82 ~ 18340 (Nearest Dollar)
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