Anew equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. the investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. if marr is 10%, is investing in this equipment feasible? use annual worth method.

It is feasible. 16,012.47 dollars

Explanation:

We will calculate the present value of the increased productivity and the salvage value.

The productivity will be done with an ordinary annuity

while the salvage with a lump sum

productivity:10,000

n = 5 years

MARR = 10%

PV$37,908

Salvage: 5,000.00

time   5 years

MARR = 10%

PV   3,104.61

Then we calcualte the NPV which si the sum of the cash inflow or cash savings after subtracting the investing cost at year zero:

Net present value: $37,907.8677 + $3,104.6066 - 25,000 = $16,012.4743

it wil be feaseble as his NPV is positive.

you can lose ranking 2 ways.

1) you don't have enough points due to you expending them by asking questions/your answers are deleted.

2) your brainliest's expired. this means that brainliests, once they exceed the 30 day limit, expires. this is to ensure that you continue to contribute into the community at a constant rank if you want to continue to have/exceed the rank you have right now.

if you go to profile, and click "show more information" located on the bottom left of the box with your information (on top of the questions answered, questions asked, and friends), you will be given the following information (example):

member since : 02/13/2017, 18: 11

questions answered: 9741

questions asked: 162

no. of brainliest answers: 1575

brainliest answers in last 30 days: 10

warnings: 0 view

questions/answers reported: 2637

questions/answers incorrectly reported: 64

look at the "brainliest answers in the last 30 days". this is the one that will affect your rank other than your points. again, once your brainliest expires (was earned 31+ days ago), it will not be counted.

~