Question

Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of its production lines for a new contract, but it plans to sell the equipment at or before its expected life is reached at an estimated market value for used equipment.

Problem 05.028.a Future Worth Analysis

Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period.

Option	D	E
First Cost	$-62,000	$-72,000
AOC, per Year	$-20,000	$-22,000
Expected Market Value	$7,000	$8,000
Expected Use	3 years	6 years

The future worth of option D is $ .

The future worth of option E is $ .

Answer 1