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# resent worth, future worth, and annual worth

Need excel help.

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See the attached file. Thanks

Allied Electrons must purchase a new automatic soldering machine to meet increased demand for its electronic goods.  Of all the machines considered, management has narrowed the choices to the following three mutually exclusive machines.  Allied uses a planning horizon of four years (all three can last this long) and a MARR of 10%.  The initial cost is in week 0 and the payments are in years 1-4. Determine the present worth, future worth, and annual worth for

Machine 1 Machine 2 Machine 3
Initial Cost \$800,000 \$650,000 \$575,000
Annual Operating Cost \$50,000 \$90,000 \$105,000
Salvage value \$40,000 \$32,500 \$28,750

MARR 10%

a) When the salvage value is in year 4, and
Year Machine 1 Present Value Interest Factor (PVIF) Discounted Value Future Value Interest Factor (FVIF) Future Value
0 (\$800,000) 1.000 (\$800,000) 1.464 (\$1,171,280.000)
1 (\$50,000) 0.909 (\$45,455) 1.331 (\$66,550.000)
2 (\$50,000) ...

#### Solution Summary

Determinate the present worth, future worth, and annual worth for this case.

\$2.19