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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