Capitalized cost of machine
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Consider the following estimates. The cost of money is 10% per year. The present worth of machine X is closest to???
Machine X Machine Y
Initial cost, $ -42,000 -66,000
Annual cost, $/year -20,000 -15,000
Salvage Value, $ 10,000 23,000
Life years 2 4
A. -97,840
B. -125,015
C. -223,120
Given the same estimates (above) with the cost of money being 10% per year, the capitalized cost of machine Y is closest to:
A. -30,865
B. -308,650
C. -684,445
How do I calculate these???
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This explains the computaiton of capitalized cost of machine and present worth of machine
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Consider the following estimates. The cost of money is 10% per year. The present worth of machine X is closest to???
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Purchase this Solution
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