document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1189739>Question 1189739</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A laboratory test machine costs 150, 000, lasts for 6 years and has a salvage value of 30, 000. How much could an investor afford to pay for another <BR>\n" );
document.write( "machine of the same purpose, whose life is 10 years with a salvage value of 40,000, if money is worth 5%. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #821217 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=821217\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> i used the financial calculator at <a  rel=nofollow HREF= \"\" target = \"_blank\"></a>\r<BR>\n" );
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document.write( "first i found out what the annual payment was for 150,000 at 5% for 6 years with a salvage value of 30,000.\r<BR>\n" );
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document.write( "those results are shown below:\r<BR>\n" );
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document.write( "i then found out what the present value was for 25142.10 annual payment at 5% for 8 years with a salvage value of 40,000.\r<BR>\n" );
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document.write( "those result are shown below:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/011804.jpg\" >\r<BR>\n" );
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document.write( "the input for the first analysis was everything except pmt.<BR>\n" );
document.write( "the output was pmt.\r<BR>\n" );
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document.write( "the input for the second analysis was everything except present value.<BR>\n" );
document.write( "the output was present value.\r<BR>\n" );
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document.write( "this made both plans equivalent to each other in terms of the annual charges per year.\r<BR>\n" );
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document.write( "the interpretation is that buying a piece of equipment for 189,572.32 with an economic life of 8 years and a salvage value of 40,000 is equivalent, in terms of annual charges, to buying a piece of equipment for 150,000 with an economic life of 6 years and a salvage value of 30,000.\r<BR>\n" );
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