4. Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The costs associated with producing chemicallytreated vinyl rollers and fi ber-impregnated rubber rollers are shown below. Determine which of the two types should be selected by calculating the rate of return on the incremental investment. Assume the company's MARR is 21% per year. Treated Impregnated First cost, $ Annual cost, $ per year Salvage value, $ Life, years - 50,000 -100,000 5,000 -95,000 -85,000 11,000 3 6 PLEASE DONT USE EXCEL, PLEASE USE FORMULATION.
4. Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The costs associated with producing chemicallytreated vinyl rollers and fi ber-impregnated rubber rollers are shown below. Determine which of the two types should be selected by calculating the rate of return on the incremental investment. Assume the company's MARR is 21% per year. Treated Impregnated First cost, $ Annual cost, $ per year Salvage value, $ Life, years - 50,000 -100,000 5,000 -95,000 -85,000 11,000 3 6 PLEASE DONT USE EXCEL, PLEASE USE FORMULATION.
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
Problem 1PS
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Aa4
Transcribed Image Text:4. Konica Minolta plans to sell a copier that prints documents on both sides
simultaneously, cutting in half the time it takes to complete big commercial jobs. The
costs associated with producing chemicallytreated vinyl rollers and fi ber-impregnated
rubber rollers are shown below. Determine which of the two types should be selected
by calculating the rate of return on the incremental investment. Assume the
company's MARR is 21% per year.
Treated
Impregnated
First cost, $
Annual cost, $ per year
Salvage value, $
Life, years
- 50,000
-95,000
-85,000
-100,000
5,000
11,000
3
PLEASE DONT USE EXCEL, PLEASE USE FORMULATION.
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