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Consider palletizer at a bottling plant that has a first cost of $17

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Consider palletizer at a bottling plant that has a first cost
of $171,112, has operating and maintenance costs of
$13,378 per year, and an estimated net salvage value of
$62,550 at the end of 30 years. Assume an interest rate of
8%. What is the future worth of this project?
Solution
Future worth of the project can be calculated as follows
First cost of plant = $ 171112
present value of Opreating and mainteance cost = cost *
Cumulative present value factor at 8% for 30 years
= $ 13378 * 11.26 = $ 150636
present value of salvage value at the end of 30 years =
salvage value * present value factor at the end of 30 year
= $ 62550 * 0.099 =$ 6192
Future worth the project = $ 171112 + $ 150636 - $ 6192
= $ 315556

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Consider palletizer at a bottling plant that has a first cost of $171,112, has operating and maintenance costs of $13,378 per year, and an estimated net salvage value of $62,550 at the end of 30 years. Assume an interest rate of 8%. What is the future worth of this project? Solution Future worth o ...
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