A mechanical engineer is considering two machines for a lathe. Machine A will have an initial cost of $82,000, annual maintenance and operating (M&O) costs of $32,000, and a salvage value of $60,000. Machine B will have an initial cost of $97,000, annual M&O costs of $27,000, and a salvage value of $30,000. Which alternative should be chosen based on a comparison of future value with an interest rate of 15% per year? Use a 3 year study period A. Machine A B. B machine C. Both alternatives are equally profitable D. There is no economically feasible solution if the alternatives are mutually exclusive
A mechanical engineer is considering two machines for a lathe. Machine A will have an initial cost of $82,000, annual maintenance and operating (M&O) costs of $32,000, and a salvage value of $60,000. Machine B will have an initial cost of $97,000, annual M&O costs of $27,000, and a salvage value of $30,000. Which alternative should be chosen based on a comparison of future value with an interest rate of 15% per year? Use a 3 year study period A. Machine A B. B machine C. Both alternatives are equally profitable D. There is no economically feasible solution if the alternatives are mutually exclusive
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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5.
A mechanical engineer is considering two machines for a lathe. Machine A will have an initial cost of $82,000, annual maintenance and operating (M&O) costs of $32,000, and a salvage value of $60,000. Machine B will have an initial cost of $97,000, annual M&O costs of $27,000, and a salvage value of $30,000. Which alternative should be chosen based on a comparison of
A. Machine A
B. B machine
C. Both alternatives are equally profitable
D. There is no economically feasible solution if the alternatives are mutually exclusive
Please solve based the option max 20 minutes ASAP
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