EAC(capital costs) = (P-S)(A/P,15%,4)+Si

The capital cost is the depreciation expense incurred by th

what the asset could be resold for (Salvage value) sometim
EAC(operating & maintenance costs)
Example - calculate total EAC for the following problem:
Chemical engineer needs to buy a pump
First cost will be $54,000
Annual operating costs are $18,000
Life expectancy is 10 years, salvage value = 0
Interest rate is 9%

EAC = 54,000(A/P, 9%, 10) + 18,00

EAC = 54,000*0.1558 + 18,000 = $26,410
I

0.09
n
0
1
2
3
4
5
6
7
8
9
10

CF
54000

O&M
18000

EUAC
$54,000.00
$58,860.00
$30,697.32
$21,332.96
$16,668.11
$13,882.99
$12,037.67
$10,729.29
$9,756.42
$9,007.14
$8,414.28

EUAC TTL
$76,860.00
$48,697.32
$39,332.96
$34,668.11
$31,882.99
$30,037.67
$28,729.29
$27,756.42
$27,007.14
$26,414.28

SOAL 2

A machine was purchased:

2 years ago and cost $20,000

Its expected service life was 5-years
salvage value of $5,000 was estimated
the company spent $5,000 last year on repairs
current operating costs are $8,000/year
the anticipated salvage value has now been reduced to $2,500 at the end o
in addition, the company has found that the current machine has a market
If a new one is bought this full amount is allowed as a trade-in.

What values for the defender are relevant in the analysis?

Market and trade in value: $10,000

Annual operating cost $8,000
Salvage value after 3 more years is now estimated at $2,500
Service life of 3 years (unless the repairs extended this - no info)

in addition, the company has found that the current machine has a market
If a new one is bought this full amount is allowed as a trade-in.

What values for the defender are relevant in the analysis?

Market and trade in value: $10,000

Annual operating cost $8,000
Salvage value after 3 more years is now estimated at $2,500
Service life of 3 years (unless the repairs extended this - no info)
I

0.09
n
0
1
2
3

CF
-10000

O&M
-8000
-8000
-8000
-8000

SALVAGE

EUAC

$2,500.00

($8,400.00)
($4,488.52)
($3,187.91)

SALVAGE

EUAC

0.2
n
0
1
2
3
4
5

CF
-30000

n
0
1
2
3
4
5

CF
-120000

DEFENDER
O&M
-60000
-60000
-60000
-60000
-60000
-60000

Challenger
O&M
-30000

$0.00

($36,000.00)
($19,636.36)
($14,241.76)
($11,588.67)
($10,031.39)

SALVAGE

EUAC

50000

($94,000.00)
($78,545.45)
($56,967.03)
($46,354.69)
($40,125.56)

se incurred by the difference between what is paid now for the assets require
e value) sometime after purchase.

wing problem:

=0

Biasanya D&M nilai nya semakin tahun makin naik untuk maintenance

to $2,500 at the end of remaining service life

machine has a market value now of $10,000
trade-in.

analysis?

$2,500
is - no info)

machine has a market value now of $10,000

trade-in.

analysis?

$2,500
is - no info)

euac ttl
($16,400.00)
($12,488.52)
($11,187.91)

I
euac ttl

pw

n
0
1
2
3
4
5

($96,000.00) ($209,436.73)
($79,636.36)
($74,241.76)
($71,588.67)
($70,031.39)

EUAC TTL
($124,000.00)
($108,545.45)
($86,967.03)
($76,354.69)
($70,125.56)

0.1

I
($189,624.49)

defender
CF
saving
-140000 65000
65000
65000
65000
65000
65000

0.09
n
0
1
2
3
4
5

challenger
CF
saving
-400000 90000
90000
90000
90000
90000
90000

now for the assets required and

ahun makin naik untuk maintenance tetapi untuk saat ini dianggap konstan

SALVAGE

EUAC FC
$151,500.00
($4,488.52)
($3,187.91)

80000

(uang yang baru ditrima 5 tahun yang akan datang)

euac Sv
EUAC TTL
$80,000.00
$38,095.24
$24,169.18
$17,237.66
$13,103.80

hallenger
SALVAGE

EUAC
($8,400.00)
($4,488.52)
($3,187.91)

180000

euac ttl

$145,000.00

kan datang)

0.1
n
0
1
2
3
4
5

FC
-20000

defender
AE

Market value

EUAC FC

$15,000.00
$11,250.00
$8,500.00
$6,500.00
$4,750.00

($22,000.00)
($11,523.81)
($8,042.30)
($6,309.42)
($5,275.95)

-2000
-3000
-4620
-8000
-12000

(uang yang baru ditrima 5 tah

euac Sv
$15,000.00
$5,357.14
$2,567.98
$1,400.56
$778.04

End of Year

Market Value
at year end

Annual
Expenses

EAC

$20,000

15,000

2,000

9,000

11,250

3000

8,643

8,500

4,620

8,598

6,500

8,000

9,084

4,750

12,000

9,954

yang baru ditrima 5 tahun yang akan datang)

pv ae
Cumulatif kan
($1,818.18)
($2,479.34)
($3,471.07)
($5,464.11)
($7,451.06)

($1,818.18)
($4,297.52)
($7,768.60)
($13,232.70)
($20,683.76)

EUAE
($2,000.00)
($2,476.19)
($3,123.87)
($4,174.53)
($5,456.32)

TOTAL EUAC
($9,000.00)
($8,642.86)
($8,598.19)
($9,083.39)
($9,954.23)

Dicari nilai yang terenda

icari nilai yang terendah (cost paling murah)