Can you guys please Clearly present the cash flow diagram(s), equivalency model(

Question

Can you guys please Clearly present the cash flow diagram(s), equivalency model(s), assumptions made and detailed calculations for each problem? (Without Excel)
Thanks 6. A semiconductor manufacturer has been ordered by the city to stop discharging acidic waste liquids into the city sewer system. Your analysis shows you could select any one of the following three systems Annual System Installed c $30,000 35,000 Evergren 80,000 $6.000 5.000 $2.000 5.000 Slowsiver 1.000 the system is expected to last and be used 20 years and money is worth8%which system should be purchased?

Explanation / Answer

Find the annual equivalent cost of all the methods

AE of D = 30000(A/P, 8%, 20) + 6000 - 2000(A/F, 8%, 20) = 30000*0.10185 + 6000 - 2000*0.02185 = 9,012

AE of S = 35000(A/P, 8%, 20) + 5000 - 5000(A/F, 8%, 20) =  35000*0.10185 +5000 - 5000*0.02185 = 8,455

AE of E = 80000(A/P, 8%, 20) + 1000 - 40000(A/F, 8%, 20) =  80000*0.10185 + 1000 - 40000*0.02185 = 8,274

See that the annual equivalent is lowest for Evergreen we select Evergreen

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.