) A new machine is needed for the casting machines in a foundry factory producing in the organized industry. There are two types of machines on the market that will do the same job. The information is as follows. Machine A Machine B Savings to be achieved 370.000 370.000 Buying prices 125.000 167.000 Scrap values 25.000 35.000 Annual operating expense 8.900 5.200 Annual energy expense 40.000 32.000 Engine maintenance in the 7th year 12.000 7.000 Economic life 11 Years 11 Years Capital cost %25 %25 Which machine do you prefer. Note: Solve according to NPV method.
) A new machine is needed for the casting machines in a foundry factory producing in the organized industry. There are two types of machines on the market that will do the same job. The information is as follows. Machine A Machine B Savings to be achieved 370.000 370.000 Buying prices 125.000 167.000 Scrap values 25.000 35.000 Annual operating expense 8.900 5.200 Annual energy expense 40.000 32.000 Engine maintenance in the 7th year 12.000 7.000 Economic life 11 Years 11 Years Capital cost %25 %25 Which machine do you prefer. Note: Solve according to NPV method.
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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3.) A new machine is needed for the casting machines in a foundry factory producing in the organized industry. There are two types of machines on the market that will do the same job. The information is as follows.
|
|
Machine A |
Machine B |
|
Savings to be achieved |
370.000
|
370.000
|
|
Buying prices |
125.000
|
167.000 |
|
Scrap values |
25.000 |
35.000 |
| Annual operating expense |
8.900 |
5.200 |
|
Annual energy expense |
40.000 |
32.000 |
|
Engine maintenance in the 7th year |
12.000 |
7.000 |
|
Economic life |
11 Years |
11 Years |
|
Capital cost |
%25
|
%25
|
|
|
|
|
Which machine do you prefer.
Note: Solve according to NPV method.
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