9-15. A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life (see Table P9-15, p. 439). The firm's MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 Annual revenues less expenses Abandonment value of machine" a Estimated MV. 1 $2,000 $6,200 End of Year 4 2 3 $2,000 $2,000 $2,000 $5,200 $4,000 $2,200 5 $2,000 0

9-15. A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life (see Table P9-15, p. 439). The firm's MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won't be used for more than five years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 Annual revenues less expenses Abandonment value of machine" a Estimated MV. 1 $2,000 $6,200 End of Year 4 2 3 $2,000 $2,000 $2,000 $5,200 $4,000 $2,200 5 $2,000 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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