07 ModelHW7 - Purchase Cost $15,000.00 i(1 0.10 i(2 0.15 n 1 2 3 4 5 O&M Costs Market value $2,500.00 $12,000.00 $3,200.00 $8,100.00 $5,300.00

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Purchase Cost:  $15,000.00  i(1) 0.10 i(2) 0.15 n Market value PW(10%) AE(10%) PW(15%) AE(15%) 1  $2,500.00   $12,000.00   $6,363.55   $6,999.91   $6,738.80   $7,749.62  2  $3,200.00   $8,100.00   $13,223.39   $7,619.19   $13,469.11   $8,285.07  3  $5,300.00   $5,200.00   $19,992.36   $8,039.22   $19,659.27   $8,610.31  4  $6,500.00   $3,500.00   $25,948.12   $8,185.87   $24,793.67   $8,684.36  5  $7,800.00   $-     $33,181.64   $8,753.23   $30,673.13   $9,150.27  Economic life of the machine is 1 year.   for both rates.
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MARR 0.12 n Defender Challenger 1  $(3,200.00)  $(5,800.00) 2  $(2,500.00)  $(4,230.00) 3  $(2,650.00)  $(3,200.00) 4  $(3,300.00)  $(3,500.00) 5  $(4,000.00) 6  $(5,500.00) 0 1 2 3 4 5 6 7 8 Option 1 (J0,4),(J,3),(J,3) J0 J Option 2 (J0,3),(J,3),(J,4) J0 J J Option 3 (J0,2),(J,4),(J,4) J0 J J Option 4 (J0,1),(J,5),(J,4) J0 J J OPTION 1  $18,400.00  OPTION 2  $17,200.00 
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This note was uploaded on 05/12/2010 for the course BUSINESS BS515 taught by Professor Johnson during the Fall '09 term at Drexel.

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07 ModelHW7 - Purchase Cost $15,000.00 i(1 0.10 i(2 0.15 n 1 2 3 4 5 O&M Costs Market value $2,500.00 $12,000.00 $3,200.00 $8,100.00 $5,300.00

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