BOR/YR AINTENANCE/YR AXES/INSURANCE OWER/YR FE.YRS 11.6K 2.8K 3% of IST cost 1.3K 5 9.32K 1.9K 3% of IST cost 1.36K 5 4.2K 1.3K 3% of IST cost 2.4K 5 2K 0.7K 3% of IST c 2.020K 5

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
icon
Related questions
Question

A man were employed in a company and the company tasked him to buy a new router to boost the connectivity with many networks switch. There are four available products to choose from with the ff cost data.

 

 

COST DATA
Brand A
В
D
FIRST COST
24K
30K
49.6K
52K
LABOR/YR
11.6K
9.32K
4.2K
2K
ΜAINΤΕΝAN CE/YR
TAXES/INSURANCE
2.8K
1.9K
1.3K
0.7K
3% of IST cost
3% of IST cost
3% of IST cost
3% of IST cost
POWER/YR
1.3K
1.36K
2.4K
2.020K
LIFE,YRS
5
5
5
If the cost of money is 17%, choose the best alternative that you will
Recommend using annual worth method.
а.
b.
Present your answer in matrix form.
C.
Show your computation on depreciation using sinking fund formula.
Transcribed Image Text:COST DATA Brand A В D FIRST COST 24K 30K 49.6K 52K LABOR/YR 11.6K 9.32K 4.2K 2K ΜAINΤΕΝAN CE/YR TAXES/INSURANCE 2.8K 1.9K 1.3K 0.7K 3% of IST cost 3% of IST cost 3% of IST cost 3% of IST cost POWER/YR 1.3K 1.36K 2.4K 2.020K LIFE,YRS 5 5 5 If the cost of money is 17%, choose the best alternative that you will Recommend using annual worth method. а. b. Present your answer in matrix form. C. Show your computation on depreciation using sinking fund formula.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Trading
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education