Machine A has an initial cost of $6,000 with total annual maintenance costs of $750. Machine B has an initial cost of $8,500 with total annual maintenance costs of $405. At a 10% nominal annual interest rate, in approximately how many years do the two machines have the same present worth

Question

Adones2065 Adones2065

21-06-2022
Business

contestada

Machine A has an initial cost of $6,000 with total annual maintenance costs of $750. Machine B has an initial cost of $8,500 with total annual maintenance costs of $405. At a 10% nominal annual interest rate, in approximately how many years do the two machines have the same present worth

Respuesta :

Otras preguntas

Read the thesis statement below and answer the question that follows. While they impact the environment, recycling programs, emissions standards, and renewable

Why do you think the United States and the Soviet Union participated in Angola’s civil war?

Which description of the term caliph is correct? A. the high turret that sits atop a mosque B. a Muslim ruler in the Islamic Empire C. a follower of Abu Bakr

what are 3 plant adaptations to land?

Sam cut a pie into equal slices. There are only three slices left. The angle measure for the three slices is 72 degrees. How many slices did Sam cut the pie int

What Are Two Characteristics Of Utilitarianism?

The nucleus includes all of the following structures except

what is direct variation?

I am currently studying about spectrums, difraction Gratings, and many other spectrum. So my question is: What should the Spectrum of the Moon look like? Justif

How did lincoln and johnson differ in qualities of leadership in personality

chilljain33 chilljain33 · Answer 1 · 2022-06-28T15:34:27+02:00

When the initial cost of Machine A is $6,000 and that of Machine B is $8,500, then both the machines will have the same current value at the end of 10 years.

What is the meaning of current value?

The present market value of an asset that prevails in the market is known as the current value of an asset. Using the given conditions, the current value will be the same as computed under,

[tex]\rm Cost\ of\ Machine\ A\ + Maintenance\ Cost(Interest\ Rate)= Cost\ of\ Machine\ B\ +Maintenance\ Cost(Interest\ Rate)[/tex]

Putting the given value and solving further we get,

[tex]\rm Current\ Value\ x\ 7.25\ x\ 10\% = \dfrac{2500}{345}\\\\\rm Current Value= 10[/tex]

Hence, the significance of current value is aforementioned.

Learn more about current value here:

https://brainly.com/question/8286272

#SPJ1