Tutorial 1

Tutorial 1 - 3 4 *1000 $ Net Income-100 119 119 118 117 146...

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Tutorial 1 - Question 2 DATA MARR = 10% per year First Cost 100 1000 $ Gross Income 120 1000 $ per year Gas Cost 1 1000 $ per year Salvage Value 30 @ the end of year 5 Year 0 1 2 3 4 5 Maint.Cost 0 0 1 2 3 *1000 $ CALCULATIONS Year 0 1 2 3 4 5 Gross Income 0 120 120 120 120 120 *1000 $ Salvage Value 30 *1000 $ First Cost 100 *1000 $ Maint. Cost 0 0 1 2 3 *1000 $ Gas Cost 1 1 1 1 1 *1000 $ Total Cost 100 1 1 2
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Unformatted text preview: 3 4 *1000 $ Net Income-100 119 119 118 117 146 *1000 $ [Gross Income - Total Cost] Net Income (PW)-100 108.18 98.35 88.66 79.91 90.65 *1000 $ [Net Income / (1+MARR)^Year] Total PW 365.75 *1000 $ [sum of PW over years] This is a good investment since the net PW is positive....
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This note was uploaded on 04/01/2012 for the course MSCI 261 taught by Professor Bonkoo during the Winter '09 term at Waterloo.

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