company wants to buy a machine with a cash sale price of 750,000 TL. The machine is economical life is 4 years and at the end of this period the estimated scrap value will be 100,000 TL. Annual maintenance cost 20.000 TL As per the contract, there will be no increase in maintenance costs for
A company wants to buy a machine with a cash sale price of 750,000 TL. The machine is economical
life is 4 years and at the end of this period the estimated scrap value will be 100,000 TL. Annual maintenance cost 20.000 TL
As per the contract, there will be no increase in maintenance costs for 4 years. From products to be produced by machine
300.000 TL sales revenue will be obtained in the first year and sales revenues will increase by 15% in the following years
It is estimated. The labor and material expenses in the first year are estimated to be 100,000 TL and the labor costs in the following years.
and supplies costs will increase by 10% each year. If the expected return rate from this investment is 20%,
Calculating the present value (NPV) ”and whether the investment in machinery will be economical according to this method
specify
Step by step
Solved in 3 steps
