Selected Solutions - 6

Selected Solutions - 6 - Select machine C 6.13 AW land...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
SOLUTIONS TO SELECTED PROBLEMS Student: You should work the problem completely before referring to the solution. CHAPTER 6 Solutions included for problems 1, 4, 7, 10, 13, 16, 19, 22, 25, 28, and 31 6.1 The estimate obtained from the three-year AW would not be valid, because the AW calculated over one life cycle is valid only for the entire cycle , not part of the cycle. Here the asset would be used for only a part of its three-year life cycle. 6.4 AW centrifuge = -250,000(A/P,10%,6) – 31,000 + 40,000(A/F,10,6) = $-83,218 AW belt = -170,000(A/P,10%,4) – 35,000 – 26,000(P/F,10%,2)(A/P,10%,4) + 10,000(A/F,10%,4) = $-93,549 Select centrifuge. 6.7 AW X = -85,000(A/P,12%,3) – 30,000 + 40,000(A/F,12%,3) = $-53,536 AW Y = -97,000(A/P,12%,3) – 27,000 + 48,000(A/F,12%,3) = $-53,161 Select robot Y by a small margin. 6.10 AW C = -40,000(A/P,15%,3) – 10,000 + 12,000(A/F,15%,3) = $-24,063 AW D = -65,000(A/P,15%,6) – 12,000 + 25,000(A/F,15%,6) = $-26,320
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Select machine C. 6.13 AW land = -110,000(A/P,12%,3) – 95,000 + 15,000(A/F,12%,3) = $-136,353 AW incin = -800,000(A/P,12%,6) – 60,000 + 250,000(A/F,12%,6) = $-223,777 AW contract = $-190,000 Use land application. 6.16 AW 100 = 100,000(A/P,10%,100) = $10,001 Chapter 6 1 AW ∞ = 100,000(0.10) = $10,000 Difference is $1. 6.19 AW = -100,000(0.08) –50,000(A/F,8%,5) = -100,000(0.08) –50,000(0.17046) = $-16,523 6.22 Find P in year –1, move to year 9, and then multiply by i. Amounts are in $1000. P-1 = [100(P/A,12%,7) – 10(P/G,12%,7)](F/P,12%,10) = $1055.78 A = 1055.78(0.12) = $126.69 6.25 Find PW in year 0 and then multiply by i. PW = 50,000 + 10,000(P/A,10%,15) + (20,000/0.10)(P/F,10%,15) = $173,941 6.28 Note: i = effective 10% per year. A = [100,000(F/P,10%,5) – 10,000(F/A,10%,6)](0.10) = $8389 6.31 AW = -800,000(0.10) – 10,000 = $-90,000 Answer is (c) Chapter 6 2...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

Selected Solutions - 6 - Select machine C 6.13 AW land...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online