A presently owned machine has the projected mar­ket value and M&O costs shown below. At an in­terest rate of 10% per year, the AW for keeping the machine 2 more years is closest to: (choose one)

(a) $29,650

(b) $32,840

(c) $35,770

(d ) $39,720


AW2 = -32,000(A/P,10%,2) - 24,000 + 14,000(A/F,10%,2)
= -32,000(0.57619) - 24,000 + 14,000(0.47619)
= $-35,771

Answer is (c) $35,770

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