a proposal is made to spend $105,000 to refurbish several pallatizing systems in a distribution facility. It is expected the refurbishments will save the company $20,000 per year in scrap costs by improving quality. The refurbishment is expected to provide 7 years of life to the equipment. There will be no salvage value for the equipment at the end of the 7 years. The company has a MARR of 15% what is the present worth of this proposal?
a proposal is made to spend $105,000 to refurbish several pallatizing systems in a distribution facility. It is expected the refurbishments will save the company $20,000 per year in scrap costs by improving quality. The refurbishment is expected to provide 7 years of life to the equipment. There will be no salvage value for the equipment at the end of the 7 years. The company has a MARR of 15% what is the present worth of this proposal?
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 proposal is made to spend $105,000 to refurbish several pallatizing systems in a distribution facility. It is expected the refurbishments will save the company $20,000 per year in scrap costs by improving quality. The refurbishment is expected to provide 7 years of life to the equipment. There will be no salvage value for the equipment at the end of the 7 years. The company has a MARR of 15%
what is the present worth of this proposal?
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