Because of international competition, a company that manufactures high-speed submersible rotary indexing spindles must upgrade its production equipment to reduce costs over a 6-year planning horizon. The company can invest $80,000 one year from now, 2 years from now, or 3 years from now. Depending on when the investment is made, the savings will vary. That is, the savings will be $29,000, 34,000, or $38,000 per year if the investment is made 1, 2, or 3 years from now, respectively. Will the timing of the investment affect the request to make at least 20% per year return? Use future worth analysis and solve using factors. (Click to select) No Yes , the timing of the investment (Click to select) will not will affect the request to make at least 20% per year return. The investment must be made in (Click to select) 3 2 1 years.
Because of international competition, a company that manufactures high-speed submersible rotary indexing spindles must upgrade its production equipment to reduce costs over a 6-year planning horizon. The company can invest $80,000 one year from now, 2 years from now, or 3 years from now. Depending on when the investment is made, the savings will vary. That is, the savings will be $29,000, 34,000, or $38,000 per year if the investment is made 1, 2, or 3 years from now, respectively.
Will the timing of the investment affect the request to make at least 20% per year return? Use future worth analysis and solve using factors.
(Click to select) No Yes , the timing of the investment (Click to select) will not will affect the request to make at least 20% per year return.
The investment must be made in (Click to select) 3 2 1 years.
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