Year (n) (P/F, 10%, n) OM Cost PV (O&M) Total OM Total O&M + Initial Cost

1 0.909 $ 148,000 $ 134,545 $ 134,545 $ 479,545

2 0.826 $ 148,000 $ 122,314 $ 122,314 $ 467,314
3 0.751 $ 148,000 $ 111,195 $ 111,195 $ 456,195
4 0.683 $ 210,000 $ 143,433 $ 143,433 $ 488,433
5 0.621 $ 210,000 $ 130,393 $ 130,393 $ 475,393
6 0.564 $ 210,000 $ 118,540 $ 118,540 $ 463,540

AW = ([Salvage Value x (P/F, 10%, n)] -[Total OM +345000]) (A/P, 10%,

 Salvage Value PW Salvage Value PW (A/P, 10%, n) AW
$ 140,000 $ 127,273 $ 352,273 1.100 $ 387,500
$ 140,000 $ 115,702 $ 351,612 0.576 $ 202,528
$ 140,000 $ 105,184 $ 351,011 0.402 $ 141,106
$ - $ - $ 488,433 0.315 $ 153,856
$ - $ - $ 475,393 0.264 $ 125,504
$ - $ - $ 463,540 0.230 $ 106,614
Servic
)] -[Total OM +345000]) (A/P, 10%, n) $450,000

$400,000

$350,000

$300,000

Annual Worth
$250,000

$200,000

$150,000

$100,000

$50,000

$-
0
 Service Life - Annual Worth Upgrade Conveyor
$450,000

$400,000

$350,000

$300,000
Annual Worth

$250,000

$200,000

$150,000

$100,000

$50,000

$-
0 1 2 3 4 5 6 7

Year