Need help with your Discussion

Get a timely done, PLAGIARISM-FREE paper
from our highly-qualified writers!

glass
pen
clip
papers
heaphones

Economic Minimum Life Service

Economic Minimum Life Service

Economic Minimum Life Service

For 12 years
0 1 2 3 4 5 6 7 8 9 10 11 12
splitter -5800 600
operating cost -1000 -1100 -1210 -1331 -1464.1 -1610.51 -1771.56 -1948.72 -2143.59 -2357.95 -2593.74 -2853.12
loan 5400 -270 -270 -5670
total -400 -1270 -1370 -6880 -1331 -1464.1 -1610.51 -1771.56 -1948.72 -2143.59 -2357.95 -2593.74 -2253.12
pv @ 7% 1 0.934579 0.873439 0.816298 0.762895 0.712986 0.666342 0.62275 0.582009 0.543934 0.508349 0.475093 0.444012 8.942686
pv -400 -1186.92 -1196.61 -5616.13 -1015.41 -1043.88 -1073.15 -1103.24 -1134.17 -1165.97 -1198.66 -1232.27 -1000.41 -18366.8
equivalent annual cost 2053.854584 2053.855
For 6 years
0 1 2 3 4 5 6
splitter -5800 2200
operating cost -1000 -1100 -1210 -1331 -1464.1 -1610.51
loan 5400 -270 -270 -5670
total -400 -1270 -1370 -6880 -1331 -1464.1 589.49
pv @ 7% 1 0.934579 0.873439 0.816298 0.762895 0.712986 0.666342 5.76654
PV -400 -1186.92 -1196.61 -5616.13 -1015.41 -1043.88 392.8021 -10066.2
equivalent annual cost 1745.622158 1745.622

Other Related Post: Bonds and Provisions

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

Question 


Individual Computer Spreadsheet Problem with Executive Summary Details

The following are suggestions and useful information to assist you with completing the Individual Computer Spreadsheet Problem with Executive Summary.  As always, I welcome your questions.

Where:

  • DP is the down payment
  • SV is the salvage value
  • PW is the Present Worth of…
  • AOC is the annual operating cost
  • LA is the loan amount

Suggestions:

Economic Minimum Life Service

Economic Minimum Life Service

  1. The Economic Service Life (ESL) that this problem is based upon can be found discussed in the Text in Chapter 11 Section 2, page 308.
  2. The equation above is adapted especially for this problem and is based upon the Equation 11.3 in the Text.
  3. The ESL topic is also specifically discussed in Video Lecture 12 Continued, “More on Replacement Analysis” at the 11 minute and 25 second time stop. And you can find it in the Viewing Guide starting on page 205.
  4. Please be aware that “Economic Service Life (ESL)” is synonymous with “Minimum Cost Life”.
  5. You can find the exact CFD for this problem at the very end of the Video Lecture #15 Continued, “Taxation” at the 30 minute and 52 second time stop.
  6. You will need to apply the above equation for each year of the 12 year study. I suggest working it by hand then doing the spreadsheet. If you have difficulty with the built in functions of excel, then just write in the interest factor formulas and let the spreadsheet compute the answers for each year. Or you can use a combination of excel functions and interest formulas. Your choice.
  7. This individual computer spreadsheet problem has some similarity to homework Practice Problem 14 and Group Homework Problem 11.15.

Individual Computer Spreadsheet Problem: A self-employed worker operates a firewood-splitting service.  He purchased a commercial-grade wood splitter for $5800.  He used $400 of business capital and financed the balance at 5% per year for 3 years.  The estimated values of the splitter for the next 6 years are $2200 after the first year of ownership, decreasing by $400 per year to year 5, after which the resale value remains at $600.  Annual operating costs are expected to be $1000 the first year, increasing by 10% each year thereafter.  He considers keeping the splitter at least 6 years.  If money is worth 7% per year, for how many years should the splitter be retained?  (Perform the Economic Minimum Life analysis for at least 12 years.)

Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter


1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.

Email
Office Address: 2066 N Capitol Ave, San Jose, CA 95132, United States
UK Address: 2 Frederick Street, Kings Cross, London, United Kingdom, WC1X 0ND
Eminencepapers.com ©2023 All rights reserved. Terms of usePrivacy Policy Revision PolicyMoney Back Guarantee | Plagiarism Free Guarantee
We Can Write It for You! Enjoy 20% OFF on This Order. Use Code SAVE20

Stuck with your Assignment?

Enjoy 20% OFF Today
Use code SAVE20