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A Tank costs 90,000 $ with a life of 6 years and has no salvage value....

A Tank costs 90,000 $ with a life of 6 years and has no salvage value. It needs an annual maintenance expenditure of 1200 $ for cleaning the tank from inside arrangement. The interest rate is 12%. Calculate the following

i) Present worth at zero time of the annual maintenance

ii) Future worth of annual maintenance for each year of operation

iii) Calculate the depreciation and asset value at the end of 4th year using straight line depreciation method

Engineering   Chemical-Engineering   
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