A police department just purchased a new set of radar guns for $44,800. Its operating costs are $4,200, exclusive of depreciation. The radar guns will have a five year useful life with a residual value of $7,500. A week after the purchase, a different company offered another type of radar gun that would reduce the operating costs to just $1,300, exclusive of depreciation. These new radar guns have a total cost of $55,100, a useful life of five years, and a residual value of $10,700. The “old” radar guns can be sold outright for $39,000. Using a NPV analysis with a discount rate of 12 percent, determine which alternative is preferable. CAN YOU HELP ME FIGURE OUT THE NPV FOR THE FIRST ALTERNATIVE PLEASE? I GOT THE SECOND NPV ALTERNATIVE AT -14,714 BUT I AM HAVING TROUBLE WITH THE FIRST ONE. I GOT -16,683 BUT THEY GOT -55,684
A police department just purchased a new set of radar guns for $44,800. Its operating costs are $4,200, exclusive of
Using a
CAN YOU HELP ME FIGURE OUT THE NPV FOR THE FIRST ALTERNATIVE PLEASE? I GOT THE SECOND NPV ALTERNATIVE AT -14,714 BUT I AM HAVING TROUBLE WITH THE FIRST ONE. I GOT -16,683 BUT THEY GOT -55,684
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