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ID: 1133395 • Letter: T
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test before clicking Save and Submit Remaining Time: 1 hour, 24 minutes, 18 Question Completion Status: Moving to another question will save this response Question 5 A machine that have the follow ng cost First cost $70,000 Semiannual operating cost -6,000 Semiannual income 18,000 Salvage value 9,000 Life in years 5 years O a PW--$39,059 o b. PW- $19,059 Oc. PW $39,059 o d. PW- $29,059 under consideration for a new manufacturing process. Theini estra os % n on sen u a) Moving to another question will save this response. (pExplanation / Answer
Answer is C. PW = $ 39059 Explanation: Semi Annual Cashflows PVF @ 3% Present Value Period 0 -70000 1 -70000 1 12000 0.970874 11650.49 2 12000 0.942596 11311.15 3 12000 0.915142 10981.7 4 12000 0.888487 10661.84 5 12000 0.862609 10351.31 6 12000 0.837484 10049.81 7 12000 0.813092 9757.098 8 12000 0.789409 9472.911 9 12000 0.766417 9197.001 10 21000 0.744094 15625.97 Present worth 39059
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