economics
1) A new hydraulic lift will cost $136754. At the end of its 8 years of useful life, the machine can be sold for $42390. The new machine will reduce annual expenses by $10068. The interest rate is 9% compounded annually. What is the present worth for this investment?
2) Mr. Asimov must replace the 11 robots on his assembly line. The Robo100 model costs $47627 per robot and they will last for three years. The EconoRobo model costs $11048 per robot and will last for two years. The Robo100 models will have an end of life salvage value of $6029 each. The EconoRobo models will not have any value at the end of their lives. The Robo100 models are also more energy efficient and it is estimated Mr. Asimov will be able to save a total of $9438 per year in energy costs. Mr. Asimov uses a MARR of 10% to evaluate potential investments.
Using present worth analysis, what is the present worth of the EconoRobo system?
3) Mr. Asimov must replace the 11 robots on his assembly line. The Robo100 model costs $20105 per robot and they will last for three years. The EconoRobo model costs $8514 per robot and will last for two years. The Robo100 models will have an end of life salvage value of $9258 each. The EconoRobo models will not have any value at the end of their lives. The Robo100 models are also more energy efficient and it is estimated Mr. Asimov will be able to save a total of $4053 per year in energy costs. Mr. Asimov uses a MARR of 10% to evaluate potential investments.
Using present worth analysis, what is the present worth of the Robo100 system?
4) Ethel makes a deposit of $245 into her retirement account every month for 32 years. Her bank pays a nominal annual rate of 12% compounded monthly. How much will Ethel have in her account at the end of 32 years?
