Question

Ms. Child is considering the purchase of a new food packaging system. The system costs $194628. Ms. Child plans to make a down payment of 1/2 of the purchase price. The vendor will allow her to pay back the rest of the cost over 6 years, beginning at the end of year 3, at an interest rate of 5% compounded annually. The system is expected to last 16 years and have a salvage value of $10903 at that time. Over the 16 year period, Ms. Child expects to pay $1569 per year for maintenance. Ms. Child uses a MARR of 9% to evaluate investments. What is the net present worth of the system?

Answer 1

@uri

Answer 2

@mathmale

Answer 3

hold on

Answer 4

I need to solve the the annual loan payment given the initial P_o which is 1/2 of the system cost. Then I need to solve for F_2 = P_2.

Answer 5

@mathmale

Answer 6

@tkhunny