Appledale Dairy is considering upgrading an old ice-cream maker. Moderate upgrading costs $7050 now and yields annual savings of $4800 in the first year, and decreases by $300 dollars every year after that. If the upgraded ice-cream maker will last for seven years, what is the present worth of the upgrading option? Use a present worth comparison. Appledale's MARR is 9 percent.

Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 13 percent. The company is considering three models: Economic Life 5 years 5 years 3 years Using the annual worth method, which of the three tube benders should RCMP buy? Model T A X First Cost $120,000 $170,000 $210,000 Yearly Net Savings $50,000 $80,000 $85,000 Salvage Value $20,000 $25,000 $80,000 Click the icon to view the table of compound interest factors for discrete compounding periods when i = 13%. The annual worth of Model T is $ The annual worth of Model A is $ The annual worth of Model X is So, the Model $ is the better choice to buy. (Round to the nearest cent as needed.)

Your company is determing whether or not it should invest in a new pallet wrapping station. The station would cost $6,500 and your company's MARR is 13%. You estimate the purchasing a pallet wrapper would save you $2,000 in labor annually, and at the end of 3 years you would realize a salvage value of $400. How would you calculate the present worth of this investment in Excel?

An alternative method of construction would be to construct a bridge of pre-stressed concrete construction. The estimated life of such a structure will be 20 years. The first cost would be $150,000 and it would have a salvage value of $20,000 at the end of its useful life. The yearly maintenance cost would be $2,000. What would be the total yearly cost? The interest rate is 8%.

Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP'S MARR is 14 percent. The company is considering three models: Model T A X First Cost $90,000 $140,000 $190,000 Economic Life 6 years 6 years 5 years Yearly Net Savings $50,000 $80,000 $85,000 Using the annual worth method, which of the three tube benders should RCMP buy? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%. The annual worth of Model T is $ The annual worth of Model A is $ .The annual worth of Model X is $ (Round to the nearest cent as needed.) So, the Model is the better choice to buy. Salvage Value $25,000 $25,000 $75,000