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a. Using the present worth method, which tube bender should it buy? b. RCMP has discovered a third alternative, which has been added to the table below. Now which tube bender should it buy?

a. Using the present worth method, which tube bender should it buy? b. RCMP has discovered a third alternative, which has been added to the table below. Now which tube bender should it buy?

Essentials Of Investments
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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the answer to this question is Q4.32= (A) T, PW= $96,664 (B)=? DONT KNOW but we just need to find how we get that answer for these questions, please help NO EXCEL 

4.32 (LG 4.3) Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering two models: First Economic Yearly Salvage Model Cost Life Net Savings Value T $100 000 5 years $50 000 $20 000 150 000 5 years 60 000 A 30 000 a. Using the present worth method, which tube bender should it buy? b. RCMP has discovered a third alternative, which has been added to the table below. Now which tube bender should it buy? First Economic Yearly Net Savings Salvage Model Cost Life Value $100 000 5 years $50 000 $ 20 000 A 150 000 5 years 60 000 30 000 X 200 000 3 years 75 000 100 000
Transcribed Image Text:4.32 (LG 4.3) Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering two models: First Economic Yearly Salvage Model Cost Life Net Savings Value T $100 000 5 years $50 000 $20 000 150 000 5 years 60 000 A 30 000 a. Using the present worth method, which tube bender should it buy? b. RCMP has discovered a third alternative, which has been added to the table below. Now which tube bender should it buy? First Economic Yearly Net Savings Salvage Model Cost Life Value $100 000 5 years $50 000 $ 20 000 A 150 000 5 years 60 000 30 000 X 200 000 3 years 75 000 100 000
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