2. A company is considering two types of equipment for its manufacturing plant. Capital is at least 16%. ? Use (a) ROR (b) AWM (c) PWM (d) EUAC ΤΥΡΕΑ ΤΥΡΕΒ 14,000 2,000 2,400 1,000 3% First cost 8,000 Salvage value Annualoperation Annualmaintenance Taxes and insurance 3,000 1,200 3% Life, years 10 15

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. A company is considering two types of equipment for its manufacturing plant. Capital is at
least 16%. ? Use (a) ROR (b) AWM (c) PWM (d) EUAC
ΤΥΡΕ Α
ΤΥΡΕ Β
First cost
8,000
Salvage value
Annualoperation
14,000
2,000
2,400
3,000
Annualmaintenance
1,200
1,000
3%
Taxes and insurance
3%
Life, years
10
15
Transcribed Image Text:2. A company is considering two types of equipment for its manufacturing plant. Capital is at least 16%. ? Use (a) ROR (b) AWM (c) PWM (d) EUAC ΤΥΡΕ Α ΤΥΡΕ Β First cost 8,000 Salvage value Annualoperation 14,000 2,000 2,400 3,000 Annualmaintenance 1,200 1,000 3% Taxes and insurance 3% Life, years 10 15
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