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Calculate the present worth of all costs for a newly acquired machine with an initial cost...

Calculate the present worth of all costs for a newly acquired machine with an initial cost of $30,000, no trade-in value, a life of 15 years, and an annual operating cost of $17,000 for the first 3 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year.

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Answer #1

Calculating the present value of the cash flow

Solved it using excel too got the same value

Refer the attached picture

Present worth = - $ 225,544.70

Please contact if having any query will be obliged to you for your generous support. Your help mean alot to me please help. Thank you

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