(b) Following particulars are available about a new automatic machine of the surgery department in a medical college. Particulars Amount ($) Initial Cost 500000 Annual O/M cost 850 Cost at the end of 12th year for technical update 50000 Annual income from the machine 60000 Salvage value of the machine 40000 Life of the machine (years) 20 (i) Write a cash flow diagram. (ii) Find the Annual Worth amount of costs and benefits separately at the MARR of 9% set by the medical college. (iii) Write your impression about purchasing this machine.

(b) Following particulars are available about a new automatic machine of the surgery department in a medical college. Particulars Amount ($) Initial Cost 500000 Annual O/M cost 850 Cost at the end of 12th year for technical update 50000 Annual income from the machine 60000 Salvage value of the machine 40000 Life of the machine (years) 20 (i) Write a cash flow diagram. (ii) Find the Annual Worth amount of costs and benefits separately at the MARR of 9% set by the medical college. (iii) Write your impression about purchasing this machine.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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Subject: acounting
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