OCF Calculation: PVIFA = [(P - v)Q - FC](1 - Tc), and....

[troubled]

I'm trying to figure out the algebra part of this bid problem

The formula is
PVIFA = [(P - v)Q - FC](1 - Tc)

and the problem is

158759.91 = [(P - 6.25)175000 - 182000](1 - .37)

where you solve for P. The textbook answer is P = 8.73 and I can't seem to get that, all I get is a variation of 5.6.

 

[Denis]

Re: OCF Calculation

158759.91 = [(P - 6.25)175000 - 182000](1 - .37)

Textbook answer is correct.

(P - 6.25)175000 - 182000 = 158759.91 / (1 - .37)

(P - 6.25)175000 = 158759.91 / (1 - .37) + 182000

175000P - 175000(6.25) = 158759.91 / (1 - .37) + 182000

175000P = 158759.91 / (1 - .37) + 182000 + 175000(6.25)

Can you finish it?

 

[troubled]

Yes, thanks.