A Pentsys lift table equipped with a powered deck extension can provide a safer

Question

A Pentsys lift table equipped with a powered deck extension can provide a safer and faster method for maintenance personnel to service large machinery. If labor savings are estimated to be $13,000 per 6 months, how much can Follansbee Steel afford to spend to purchase one, if the company uses MARR of 1% per month and wants to recover its investment in 2-1/2 years?

we are required to do it in excel. I'm not sure if i've done this correctly so far but I have
Future value = 13,000
r=1% per month
n=2.5 years

not sure how to find what they recover from its investment though

Explanation / Answer

as 13,000 is saved per 6 months, in 2.5 years, it can save 13,000*5 = 65,000 dollars. rate of interest is 1% per month. so it is 12% per annum. hence future value = 65,000 r = 12% n=2.5 years if you take r=1% then n should be in months so n = 30.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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