Quiz 7 sec 2 sol

Quiz 7 sec 2 sol - 7 8 ± − 800 ∙ µ¶ 7 8 ± ¸ ∙...

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IE 343 Spring 2010 Name: Section 2, Quiz 7 (last) (first) Closed book, closed notes. No calculators. 1. Potbelly Sandwiches bought a burner for $4,800 when they moved into their State Street location 5 years ago. These burners have a useful life of 8 years, with a salvage value of $800. Potbelly Sandwiches are now moving to Northwestern, and have decided to sell their current burner and to buy a new one. Write an expression for the estimated market value of this burner now assuming that Potbelly Sandwiches has an MARR of 7%. ANS: °? 7% ± ²³ = ´ 4800 ∙ µ¶°
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Unformatted text preview: , 7%, 8 ± − 800 ∙ µ¶· , 7%, 8 ± ¸ ∙ °¶µ , 7%, 3 ± °? 7% ± ¹? = 800 ∙ °¶· , 7%, 3 ± °? ²³ + °? ¹? = º»¼½¾¿ . 2. Consider the burner from Question 1 above. Assume that Potbelly Sandwiches kept the burner for 8 years (till the end of its useful life), and that a Straight Line method is used to depreciate the asset. What amount is depreciated at the end of year 6? What is the book value of this asset at this time? ANS: À = 4800 − 800 8 = 500 500 ∙ 6 = 3000 The book value at the end of year 6: 4800 − 3000 = 1800...
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This note was uploaded on 02/07/2012 for the course IE 343 taught by Professor Vincent,g during the Spring '08 term at Purdue.

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