Drill Press T Drill Press M Initial Investment S20,000 $30,000 Estimated Life 10 years 10 years Estimated Salvage Value $5,000 $7,000 Annual Operating Cost $12,000 $6,000 Annual Maintenance Cost $2,000 $4,0007

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
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Two numerically controlled drill presses are being considered by the production department of Zunni’s Manufacturing; one must be selected. Comparison data is shown in the table below. MARR is 10%/year. Solve, a. What is the future worth of each drill press? b. Which drill press should be recommended?

Drill Press T Drill Press M
Initial Investment
S20,000
$30,000
Estimated Life
10 years
10 years
Estimated Salvage Value
$5,000
$7,000
Annual Operating Cost
$12,000
$6,000
Annual Maintenance Cost
$2,000
$4,0007
Transcribed Image Text:Drill Press T Drill Press M Initial Investment S20,000 $30,000 Estimated Life 10 years 10 years Estimated Salvage Value $5,000 $7,000 Annual Operating Cost $12,000 $6,000 Annual Maintenance Cost $2,000 $4,0007
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