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2. The following are the relevant data of two alternative machines are shown in the table below. Determine which is the better machine if T=40%, a CFAT MARR of 10%, and SL as a depreciation method. What is the depreciation per year? Note: Calculate the CFAT thru tabular metho Use AW for solving. Machine A Machine B Capital Investment $20,000 $30,000 Life 12 years 8 years Estimated SV $4,000 $0 Annual Receipt $150,000 $188,000 Annual Expenses $138,000 $170,000

2. The following are the relevant data of two alternative machines are shown in the table below. Determine which is the better machine if T=40%, a CFAT MARR of 10%, and SL as a depreciation method. What is the depreciation per year? Note: Calculate the CFAT thru tabular metho Use AW for solving. Machine A Machine B Capital Investment $20,000 $30,000 Life 12 years 8 years Estimated SV $4,000 $0 Annual Receipt $150,000 $188,000 Annual Expenses $138,000 $170,000

Essentials Of Investments
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. The following are the relevant data of two alternative machines are shown in the table below. Determine which is the better machine if T=40%, a CFAT MARR of 10%, and SL as a depreciation method. What is the depreciation per year? Note: Calculate the CFAT thru tabular method. Use AW for solving. Machine A Machine B Capital Investment $20,000 $30,000 Life 12 years 8 years Estimated SV $4,000 $0 Annual Receipt $150,000 $188,000 Annual Expenses $138,000 $170,000
Transcribed Image Text:2. The following are the relevant data of two alternative machines are shown in the table below. Determine which is the better machine if T=40%, a CFAT MARR of 10%, and SL as a depreciation method. What is the depreciation per year? Note: Calculate the CFAT thru tabular method. Use AW for solving. Machine A Machine B Capital Investment $20,000 $30,000 Life 12 years 8 years Estimated SV $4,000 $0 Annual Receipt $150,000 $188,000 Annual Expenses $138,000 $170,000
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