Rental Rate $1,200
Selling Price $15
Machines Output FC VC TC TR Profit MC MR
0 0 $100
1 80 $100
2 180 $100
3 290 $100
4 380 $100
5 445 $100
6 500 $100
7 530 $100
Rental Add.
Machines Output MPK VMPK Rate Profit
0 0
1 80
2 180
3 290
4 380
5 445
6 500
7 530
Output Output Output MPK MPK MPK VMPK VMPK VMPK
Machines Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
0 0 0 0
1 80 72 65
2 180 162 146
3 290 261 235
4 380 342 308
5 445 401 360
6 500 450 405
7 530 477 429
UNDISCOUTED DISCOUNTED (i=.08)
VMPK VMPK VMPK VMPK VMPK VMPK
Machines Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Sum
0
1
2
3
4
5
6
7
UNDISCOUTED DISCOUNTED (i=.16)
VMPK VMPK VMPK VMPK VMPK VMPK
Machines Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Sum
0
1
2
3
4
5
6
7
Rental Rate $1,200
Selling Price $15
Machines Output FC VC TC TR Profit MC MR
0 0 $100 $0 $100 $0 ($100)
1 80 $100 $1,200 $1,300 $1,200 ($100) $15.00 15
2 180 $100 $2,400 $2,500 $2,700 $200 $12.00 15
3 290 $100 $3,600 $3,700 $4,350 $650 $10.91 15
4 380 $100 $4,800 $4,900 $5,700 $800 $13.33 15
5 445 $100 $6,000 $6,100 $6,675 $575 $18.46 15
6 500 $100 $7,200 $7,300 $7,500 $200 $21.82 15
7 530 $100 $8,400 $8,500 $7,950 ($550) $40.00 15
Rental Add.
Machines Output MPK VMPK Rate Profit
0 0
1 80 80 $1,200 $1,200 $0
2 180 100 $1,500 $1,200 $300
3 290 110 $1,650 $1,200 $450
4 380 90 $1,350 $1,200 $150
5 445 65 $975 $1,200 ($225)
6 500 55 $825 $1,200 ($375)
7 530 30 $450 $1,200 ($750)
Output Output Output MPK MPK MPK VMPK VMPK VMPK
Machines Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
0 0 0 0
1 80 72 65 80 72 65 $1,200 $1,080 $972
2 180 162 146 100 90 81 $1,500 $1,350 $1,215
3 290 261 235 110 99 89 $1,650 $1,485 $1,337
4 380 342 308 90 81 73 $1,350 $1,215 $1,094
5 445 401 360 65 59 53 $975 $878 $790
6 500 450 405 55 50 45 $825 $743 $668
7 530 477 429 30 27 24 $450 $405 $365
UNDISCOUTED DISCOUNTED (r=.08)
VMPK VMPK VMPK VMPK VMPK VMPK
Machines Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Sum
0
1 1200 1080 972 1200 1000 833 3033
2 1500 1350 1215 1500 1250 1042 3792
3 1650 1485 1337 1650 1375 1146 4171
4 1350 1215 1094 1350 1125 938 3413
5 975 878 790 975 813 677 2465
6 825 743 668 825 688 573 2085
7 450 405 365 450 375 313 1138
UNDISCOUTED DISCOUNTED (r=.16)
VMPK VMPK VMPK VMPK VMPK VMPK
Machines Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Sum
0
1 1200 1080 972 1200 931 722 2853
2 1500 1350 1215 1500 1164 903 3567
3 1650 1485 1337 1650 1280 993 3923
4 1350 1215 1094 1350 1047 813 3210
5 975 878 790 975 756 587 2318
6 825 743 668 825 640 497 1962
7 450 405 365 450 349 271 1070
Output Output Output MPK MPK MPK VMPK VMPK VMPK
MachinesYear 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
0 0 0 0
1 80 72 64.8 80 72 64.8 1200 1080 972
2 180 162 145.8 100 90 81 1500 1350 1215
3 290 261 234.9 110 99 89.1 1650 1485 1336.5
4 380 342 307.8 90 81 72.9 1350 1215 1093.5
5 445 400.5 360.45 65 58.5 52.65 975 877.5 789.75
6 500 450 405 55 49.5 44.55 825 742.5 668.25
7 530 477 429.3 30 27 24.3 450 405 364.5
UNDISCOUTED DISCOUNTED (r=.08)
VMPK VMPK VMPK VMPK VMPK VMPK
MachinesYear 1 Year 2 Year 3 Year 1 Year 2 Year 3 Sum
0
1 1200 1080 972 1200 1000 833.33 3033.3
2 1500 1350 1215 1500 1250 1041.7 3791.7
3 1650 1485 1336.5 1650 1375 1145.8 4170.8
4 1350 1215 1093.5 1350 1125 937.5 3412.5
5 975 877.5 789.75 975 812.5 677.08 2464.6
6 825 742.5 668.25 825 687.5 572.92 2085.4
7 450 405 364.5 450 375 312.5 1137.5
UNDISCOUTED DISCOUNTED (r=.16)
VMPK VMPK VMPK VMPK VMPK VMPK
MachinesYear 1 Year 2 Year 3 Year 1 Year 2 Year 3 Sum
0
1 1200 1080 972 1200 931.03 722.35 2853.4
2 1500 1350 1215 1500 1163.8 902.94 3566.7
3 1650 1485 1336.5 1650 1280.2 993.24 3923.4
4 1350 1215 1093.5 1350 1047.4 812.65 3210.1
5 975 877.5 789.75 975 756.47 586.91 2318.4
6 825 742.5 668.25 825 640.09 496.62 1961.7
7 450 405 364.5 450 349.14 270.88 1070