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Present Worth with Salvage Value of Equipment at 2nd Year Investment Formula

GoPresent Worth for Initial Replacement Formula

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Present Worth is a financial metric that represents the current value of a series of future cash flows, considering the time value of money. Check FAQs

P worth = PE - \frac{A}{1 + i r} - \frac{A}{{(1 + i r)}^{2}} + V s

P_worth - Present Worth?PE - Purchase Cost of Equipment?A - Annuity?i_r - Interest Rate per Period?V_s - Salvage Value of Equipment?

Present Worth with Salvage Value of Equipment at 2nd Year Investment Example

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Here is how the Present Worth with Salvage Value of Equipment at 2nd Year Investment equation looks like with Values.

Here is how the Present Worth with Salvage Value of Equipment at 2nd Year Investment equation looks like with Units.

Here is how the Present Worth with Salvage Value of Equipment at 2nd Year Investment equation looks like.

967611.6073 = 962000 - \frac{1000}{1 + 0.06} - \frac{1000}{{(1 + 0.06)}^{2}} + 7445

967611.6073 = 962000 - \frac{1000}{1 + 0.06} - \frac{1000}{{(1 + 0.06)}^{2}} + 7445

967611.6073 = 962000 - \frac{1000}{1 + 0.06} - \frac{1000}{{(1 + 0.06)}^{2}} + 7445

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Present Worth with Salvage Value of Equipment at 2nd Year Investment Solution

Follow our step by step solution on how to calculate Present Worth with Salvage Value of Equipment at 2nd Year Investment?

FIRST Step Consider the formula

P worth = PE - \frac{A}{1 + i r} - \frac{A}{{(1 + i r)}^{2}} + V s

Next Step Substitute values of Variables

∴

P worth = 962000 - \frac{1000}{1 + 0.06} - \frac{1000}{{(1 + 0.06)}^{2}} + 7445

Next Step Prepare to Evaluate

∴

P worth = 962000 - \frac{1000}{1 + 0.06} - \frac{1000}{{(1 + 0.06)}^{2}} + 7445

Next Step Evaluate

∴

P worth = 967611.607333571

LAST Step Rounding Answer

∴

P worth = 967611.6073

Present Worth with Salvage Value of Equipment at 2nd Year Investment Formula Elements

Variables

Present Worth

Present Worth is a financial metric that represents the current value of a series of future cash flows, considering the time value of money.

Symbol: P_worth

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Worth

Purchase Cost of Equipment

Purchase Cost of Equipment refers to the total amount of money spent or required to acquire a specific piece of equipment.

Symbol: PE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Purchase Cost of Equipment

Annuity

Annuity is a financial product or arrangement that involves a series of periodic payments or receipts made at equal intervals.

Symbol: A

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annuity

Interest Rate per Period

Interest Rate per Period represents the rate at which interest is charged or earned within a specific time frame.

Symbol: i_r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Interest Rate per Period

Salvage Value of Equipment

Salvage Value of Equipment refers to the estimated residual or scrap value that an asset is expected to have at the end of its useful life or a specific period.

Symbol: V_s

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Salvage Value of Equipment

Other Formulas to find Present Worth

Go Present Worth for Initial Replacement

P worth = (\frac{C R}{{(1 + i r)}^{n} - 1})

Other formulas in Interest and Investment Costs category

Go Capitalized Cost

K = V + (\frac{C R}{{(1 + i)}^{n} - 1})

Go Future Worth of Annuity

F = A \cdot (\frac{{(1 + i)}^{n} - 1}{i})

Go Future Worth of Annuity given Present Annuity

F = P \cdot ({(1 + i)}^{n})

Go Future Worth of Perpetuity

F P = A \cdot (\frac{{(1 + i)}^{n} - 1}{(i)})

How to Evaluate Present Worth with Salvage Value of Equipment at 2nd Year Investment?

Present Worth with Salvage Value of Equipment at 2nd Year Investment evaluator uses Present Worth = Purchase Cost of Equipment-(Annuity)/(1+Interest Rate per Period)-(Annuity)/(1+Interest Rate per Period)^(2)+Salvage Value of Equipment to evaluate the Present Worth, Present Worth with Salvage Value of Equipment at 2nd Year Investment is a financial metric that represents the current value of a series of cash flows associated with an equipment investment, taking into account the salvage value of the equipment at the end of its useful life. Present Worth is denoted by P_worth symbol.

How to evaluate Present Worth with Salvage Value of Equipment at 2nd Year Investment using this online evaluator? To use this online evaluator for Present Worth with Salvage Value of Equipment at 2nd Year Investment, enter Purchase Cost of Equipment (PE), Annuity (A), Interest Rate per Period (i_r) & Salvage Value of Equipment (V_s) and hit the calculate button.

FAQs on Present Worth with Salvage Value of Equipment at 2nd Year Investment

What is the formula to find Present Worth with Salvage Value of Equipment at 2nd Year Investment?

The formula of Present Worth with Salvage Value of Equipment at 2nd Year Investment is expressed as Present Worth = Purchase Cost of Equipment-(Annuity)/(1+Interest Rate per Period)-(Annuity)/(1+Interest Rate per Period)^(2)+Salvage Value of Equipment. Here is an example- 967611.6 = 962000-(1000)/(1+0.06)-(1000)/(1+0.06)^(2)+7445.

How to calculate Present Worth with Salvage Value of Equipment at 2nd Year Investment?

With Purchase Cost of Equipment (PE), Annuity (A), Interest Rate per Period (i_r) & Salvage Value of Equipment (V_s) we can find Present Worth with Salvage Value of Equipment at 2nd Year Investment using the formula - Present Worth = Purchase Cost of Equipment-(Annuity)/(1+Interest Rate per Period)-(Annuity)/(1+Interest Rate per Period)^(2)+Salvage Value of Equipment.

What are the other ways to Calculate Present Worth?

Here are the different ways to Calculate Present Worth-

Present Worth=(Replacement Cost/((1+Interest Rate per Period)^(Number of Interest Periods)-1))

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Present Worth with Salvage Value of Equipment at 2nd Year Investment Formula

​GoPresent Worth for Initial Replacement Formula

Present Worth with Salvage Value of Equipment at 2nd Year Investment Example

Present Worth with Salvage Value of Equipment at 2nd Year Investment Solution

Present Worth with Salvage Value of Equipment at 2nd Year Investment Formula Elements

Other Formulas to find Present Worth

Other formulas in Interest and Investment Costs category

How to Evaluate Present Worth with Salvage Value of Equipment at 2nd Year Investment?

FAQs on Present Worth with Salvage Value of Equipment at 2nd Year Investment

Variable Name

GoPresent Worth for Initial Replacement Formula