DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $10,000, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $300 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops are produced each year. Click here to access the TVM Factor Table Calculator Part a Your answer is incorrect. What is the future worth of each machine? Machine 7745: $ Machine A37Y: $ -1583 -1386 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $10,000, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $300 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops are produced each year. Click here to access the TVM Factor Table Calculator Part a Your answer is incorrect. What is the future worth of each machine? Machine 7745: $ Machine A37Y: $ -1583 -1386 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $10,000, an
estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine
A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $300 regardless of the
number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops are produced each year.
Click here to access the TVM Factor Table Calculator
Part a
Your answer is incorrect.
What is the future worth of each machine?
Machine 7745: $
Machine A37Y: $
-1583
-1386
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
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