A determine the annual capital costownership cost for the eq

A: determine the annual capital cost(ownership cost) for the equipment.

B: determine the equivalent annual savings(revenues)

C: determine the annual equivalent worth.

Here I = $66,000. S = $3,000 and n = 9 years, i = 11%

a. Annual capital cost = (66,000-3,000)*(A/P,11%,9) + (3,000)*0.11

= 63,000*0.1806 + 330

= 11,707.80

b. Equivalent annual savings = $14,000+1100*(A/G,11%,9)

= 14000+(1100*3.3144)

= $17,645.84

c. Annual equivalent worth = Savings – cost = 17645.84-11707.80

= $5,938.04