Homework Answers
FW of Machine A = -65000 *(F/P,12%,5) - 14000*(F/A,12%,5) + 6000
= -65000 *1.762342 - 14000*6.352847 + 6000
= -197492.09 ~ -197492
FW of Machine B = -110000 *(F/P,12%,5) - 6000*(F/A,12%,5) + 29000
= -110000 *1.762342 - 6000*6.352847 + 29000
= -202974.70 ~ -202975
As Future cost of Machine A is less, it should be selected
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