Suggested problems_Chp 9_sol

Suggested problems_Chp 9_sol - Suggested problems for...

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

View Full Document Right Arrow Icon
Suggested problems for Chapter 9 – Solutions 1. (9.1) The investment value of the old lift truck is its current market value. Defender: PW(20%) = $7,000 $8,000(P/A, 20%, 5) = $30,925 Challenger: PW(20%) = $22,000 $5,100(P/A, 20%, 5) + $9,000(P/F, 20%, 5) = $33,635 Keep the old lift truck (PW Defender > PW Challenger ). 2. (9.6) Cost of EOY MV Loss in MV capital Expenses TC PW A/P EUAC 0 80,000 1 60,000 20,000 12,000 30,000 62,000 53,913 1.1500 $62,000 2 50,000 10,000 9,000 30,000 49,000 37,051 0.6151 $55,952 3 40,000 10,000 7,500 35,000 52,500 34,520 0.4380 $54,962 4 25,000 15,000 6,000 40,000 61,000 34,877 0.3503 $56,174 5 12,500 12,500 3,750 45,000 61,250 30,452 0.2983 $56,919 Best time to replace is after 3 years . 3. (9.7) Challenger Year Market Value Loss in Value Cost of Capital O&M Marginal Cost EUAC 0 $42,500.00 −− −− −− −− −− 1 $31,000.00 $11,500.00 $6,375.00 $10,000.00 $27,875.00 $27,875.00 2 $25,000.00 $6,000.00 $4,650.00 $12,500.00 $23,150.00
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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 University-West Lafayette.

Page1 / 3

Suggested problems_Chp 9_sol - Suggested problems for...

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