e given below.Draw cash flow charts and make calculations using the present value method.Make your choice a

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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There are two different types of machines that produce the same job with the same quality. All the details about these machines are given below.Draw cash flow charts and make calculations using the present value method.Make your choice and write why.

 

A
B
Machine's cash price
600.000 TL
720.000 TL
Annual Revenues
200.000 TL
220.000 TL
Annual Maintenance expense
20.000 TL
25.000 TL
Annual fixed expenses
50.000 TL
40.000 TL
cost of capital
%10
%11
Scrap value
40.000 TL
48.000 TL
Economic Life
10year
10year
Transcribed Image Text:A B Machine's cash price 600.000 TL 720.000 TL Annual Revenues 200.000 TL 220.000 TL Annual Maintenance expense 20.000 TL 25.000 TL Annual fixed expenses 50.000 TL 40.000 TL cost of capital %10 %11 Scrap value 40.000 TL 48.000 TL Economic Life 10year 10year
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