FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Can someone please solve this question using hand calculations only? PLEASE AND THANK YOU!!!
3. NASA is considering two materials for use in a space vehicle. The costs are shown below.
Which should be selected on the basis of a present worth comparison at an interest rate
of 4% per year?
(hand calculation
Material A
Material B
First Cost, $
Maintenance cost, $ /year
Salvage Value, $
Life years
-$185,000
-$25,000
$12,000
-$200,000
-$22,000
$18,000
4
You should consider Least Common Multiple of (2 and 4) which is 4
years
in
your analysis
instead of 2 years!
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Transcribed Image Text:3. NASA is considering two materials for use in a space vehicle. The costs are shown below. Which should be selected on the basis of a present worth comparison at an interest rate of 4% per year? (hand calculation Material A Material B First Cost, $ Maintenance cost, $ /year Salvage Value, $ Life years -$185,000 -$25,000 $12,000 -$200,000 -$22,000 $18,000 4 You should consider Least Common Multiple of (2 and 4) which is 4 years in your analysis instead of 2 years!
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