Finance Assignment
AmazingExpertTwo alternative replacement machines are being consided to replace a current one. Machine A has a first cost of $75,200 and its salvage value at the end of six years of estimated service life is $21,000. The operating costs of this machine are estimated to be $6,800 per year. Machine B has a first cost of $44,000, and its salvage value at the end of six years' service is estimated to be negligible. The annual operating costs will be $11,500. Compare these two using a present worth criteria at i = 13%.
Consider the sets of investment projects from the table below. Compute the equivalent annual worth of each project at I =10%, and determine the acceptability of each project
n | A | B | C | D |
0 | -$1500 | -$3,500 | -$6,000 | -$15,000 |
1 | 400 | 3,000 | -3,000 | 2,000 |
2 | 500 | 2,000 | 6,000 | 4,000 |
3 | 600 | 1,000 | 2,000 | 6,000 |
4 | 700 | 500 | 4,000 | 8,000 |
5 | 800 | 500 | 2,000 | 10,000 |
- 8 years ago
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