Given the following information, what is the present worth of the new machine. assuming i=10%? Assume...
Given the following information, what is the present worth of the new machine. assuming i=10%? Assume all costs are downward in a cash flow diagram and considered positive.
| USED MACHINE |
NEW MACHINE |
|
| INITIAL COST | 20,000 |
42,000 |
| ANNUAL OPERATING COST | 4000 | 2000 |
| SALVAGE VALUE | 8000 | 15000 |
| LIFE SPAN YRS | 3 | 6 |
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Given the following information, what is the present worth of
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