A company needs a CNC machine. One of four alternative CNC machines will be selected. Machines have no salvage value. Minimum attractive rate of return is %10. The costs of the machines are given in the table below. And please make profitability by using equivalent value methods such as present value, annual equivalent cost and future value, and return rate methods such as internal
A company needs a CNC machine. One of four alternative CNC machines will be selected. Machines have no salvage value. Minimum attractive rate of return is %10. The costs of the machines are given in the table below. And please make profitability by using equivalent value methods such as present value, annual equivalent cost and future value, and return rate methods such as internal
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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A company needs a CNC machine. One of four alternative CNC machines will be selected. Machines have no salvage value. Minimum attractive
The problem has no input values, only the values in the photo I sent you.

Transcribed Image Text:First
inveitment
80000
90000
130000
Iconomic
5 ye ar
year
7 year
ñ ye ar
Annual expenses:
6800
6800
12000
12600
Energy
66000
60000
42000
37000
Workmanship
6700
ñ000
Maintenance
4000
2600
1200
Taxandasurance
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