Determine the aw annual worth that corresponds to the


A large heat treating oven for powder-coating automobile frames was purchased for $50.000. The estimated operating costs. maintenance costs, and salvage values are shown below.

Determine the AW (annual worth) that corresponds to the economic service life of the equipment, using a rate of 8%.

Year

Operating Cost. $

Maintenance cost, $

Salvage Value.

1

-15.000

-3.000

35.000

2

-17.000

-3.000

30.000

3

-19.000

-5.000

25.000

4

-21.000

-5.000

20.000

5

-23.000

-6.500

15.000

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Financial Management: Determine the aw annual worth that corresponds to the
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