Calcluate the Present Worth for the Lower Limit (8 years) and the Upper Limit (8
ID: 2798196 • Letter: C
Question
Calcluate the Present Worth for the Lower Limit (8 years) and the Upper Limit (8 years)
Given Info:
Investment = $200,000
Revenue-Expense = $50,000 / year
MARR = 10% Semi Annually
Useful Life, Years (N) p(N) 0.0001 0.0005 10.735 6Z 8 9 10 11 12 13 1415 16 0.001 0.005 0.01 0.1 0.15 0.6 0.13 0.002 0.0015 0.0003 0.0001 0.006 0.035 0.08 0.9 1.5 6.6 1.56 0.026 0.021 0.0045 0.0016 E(n) Sum(n p(n)) 0.0025 116.069 0.83696 0.9148567 0.036 0.245 0.64 8.115 72.6 18.72 0.338 0.294 0.0675 0.0256 Variance Standard Deviation sum(nA2*p(n))- VAR(N) = ( -E(n)^2 ) SD SQRT(Var(n)) 10 (E(N) - 3 SD) (E(N)+3 SD) 7.9913.48 7.99 13.48 12 13 14 15 16 17 18 Lower Limit Upper Limit Range of Useful Life Years 14 PW Lower Limit PW Upper LimitExplanation / Answer
B C D E F G H I J 2 Lower Limit Upper limit 3 Investment 200000 200000 4 Revenue-Expense = 50000 50000 Annual 5 MARR 10% 10% Semi Annually 7 Useful life = 8 Years 8 14 9 10 PW 70944.239 172453.1814 11 =E4/2*-PV(E5/2,E7*2,1)-E3 =F4/2*-PV(F5/2,F7*2,1)-F3 12 13 Since MARR is compounded semiannually Amount,Rate,No. of periods should be semi annual 14 Please provide feedback…. Thanks in advance…. :-) 15