Cupid Chocolates bought a candy making machine that had an initial cost of $74487. It has a salvage value of $10296. Its operating costs are $9365 per year. It is saving the company $1763 per year because it is more efficient. The company anticipates it will replace the machine at the end of 10 years. What is the present worth of the machine? Use an interest rate of 9% compounded annually.

Question

raffle_snaffle · Answer

@math&ing001

raffle_snaffle · Answer

I got a present worth of -118927.60

raffle_snaffle · Answer

I got the answer right. It's -118927

raffle_snaffle · Answer

i wanting to see if someone could check my work

raffle_snaffle · Answer

Are you guys still trying to figure this out?

snowsurf · Answer

Could you show your what you have so far. The compound interest formula will be needed in this case to. $$P (1 + r)^{t} = F$$
P is present value and F is the future value.