ABC Electronics must buy a piece of equipment to place electronic components on the printed circuit boards it assembles. The proposed equipment has a 10-year leife with no scrap value. The supplier has given JT several purchase alternatives. The first is to purchase the equipment for $850,000 (Option A). The second is to pay for the equipment in 10 equal installments of $135,000 each, starting one year from now (Option B). The third is to pay $215,000 now and $95,000 at the end of each year for the next 10 years (Option C). Which alternative should JT choose if their MARR is 11% per year? Use an IRR comparison approach. Where JT Electronics must purchase one of the pieces of equipment, do not consider the do nothing option (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):. Answers entered using text are case sensitive! Loing Number

ABC Electronics must buy a piece of equipment to place electronic components on the printed circuit boards it assembles. The proposed equipment has a 10-year leife with no scrap value. The supplier has given JT several purchase alternatives. The first is to purchase the equipment for $850,000 (Option A). The second is to pay for the equipment in 10 equal installments of $135,000 each, starting one year from now (Option B). The third is to pay $215,000 now and $95,000 at the end of each year for the next 10 years (Option C). Which alternative should JT choose if their MARR is 11% per year? Use an IRR comparison approach. Where JT Electronics must purchase one of the pieces of equipment, do not consider the do nothing option (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):. Answers entered using text are case sensitive! Loing Number

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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