Consider palletizer at a bottling plant that has a first cos

Consider palletizer at a bottling plant that has a first cost of $154647, has operating and maintenance costs of $16425 per year, and an estimated net salvage value of $25613 at the end of 30 years. Assume an interest rate of 8%. What is the future worth of this project? Enter your answer as follow: 123456.78

Solution

Future worth, FW ($) = 154,647 x FVIF (8%, 30) + 16,425 x FVIFA (8%, 30) - 25,613

= 154,647 x 113.2832 + 16,425 x 10.0627 - 25,613

= 17,518,907.03 + 165,279.85 - 25,613

= 17,658,573.88