The production manager of a manufacturing firm has tracked the average repair and maintenance cost of a machine for 10 years. Cost averages were steady at Rs. 20,000 for the first five years, but have increased consistently by Rs. 5,000 for each of the last 5 years. Draw the cash flow diagram and calculate the equivalent present worth and annual worth of the costs, if interest rate is 6% per annum.
The production manager of a manufacturing firm has tracked the average repair and maintenance cost of a machine for 10 years. Cost averages were steady at Rs. 20,000 for the first five years, but have increased consistently by Rs. 5,000 for each of the last 5 years. Draw the cash flow diagram and calculate the equivalent present worth and annual worth of the costs, if interest rate is 6% per annum.
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
Related questions
Question
The production manager of a manufacturing firm has tracked the average repair
and maintenance cost of a machine for 10 years. Cost averages were steady at
Rs. 20,000 for the first five years, but have increased consistently by Rs. 5,000
for each of the last 5 years. Draw the cash flow diagram and calculate the
equivalent present worth and annual worth of the costs, if interest rate is 6% per
annum.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Elements Of Electromagnetics
Mechanical Engineering
ISBN:
9780190698614
Author:
Sadiku, Matthew N. O.
Publisher:
Oxford University Press
Mechanics of Materials (10th Edition)
Mechanical Engineering
ISBN:
9780134319650
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Thermodynamics: An Engineering Approach
Mechanical Engineering
ISBN:
9781259822674
Author:
Yunus A. Cengel Dr., Michael A. Boles
Publisher:
McGraw-Hill Education
Elements Of Electromagnetics
Mechanical Engineering
ISBN:
9780190698614
Author:
Sadiku, Matthew N. O.
Publisher:
Oxford University Press
Mechanics of Materials (10th Edition)
Mechanical Engineering
ISBN:
9780134319650
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Thermodynamics: An Engineering Approach
Mechanical Engineering
ISBN:
9781259822674
Author:
Yunus A. Cengel Dr., Michael A. Boles
Publisher:
McGraw-Hill Education
Control Systems Engineering
Mechanical Engineering
ISBN:
9781118170519
Author:
Norman S. Nise
Publisher:
WILEY
Mechanics of Materials (MindTap Course List)
Mechanical Engineering
ISBN:
9781337093347
Author:
Barry J. Goodno, James M. Gere
Publisher:
Cengage Learning
Engineering Mechanics: Statics
Mechanical Engineering
ISBN:
9781118807330
Author:
James L. Meriam, L. G. Kraige, J. N. Bolton
Publisher:
WILEY