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For the alternatives shown, determine the sum of the incremental cash flows for both alternatives. Machine X Machine Y First Cost -35,000 -90,000 Annual Operating Cost -31,600 -19,400 Salvage Value Life, Years 0 8,000 2 4

For the alternatives shown, determine the sum of the incremental cash flows for both alternatives. Machine X Machine Y First Cost -35,000 -90,000 Annual Operating Cost -31,600 -19,400 Salvage Value Life, Years 0 8,000 2 4

Essentials Of Investments
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
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For the alternatives shown, determine the sum of the incremental cash flows for both alternatives. Мachine X Мachine Y First Cost -35,000 -90,000 Annual Operating Cost -31,600 -19,400 Salvage Value 8,000 Life, Years 2 4 According to Descartes' rule and Norstrom's criterion, how many i* values in all and how many positive i* are possible, for the cash flow (CF) sequence shown? Year 1 2 3 Net Cash +16,000 -32,000 - 25,000 +50,000 -8,000 Flow, $ Cumulative +16,000 -16,000 -41,000 +9,000 +1.000 CF, $
Transcribed Image Text:For the alternatives shown, determine the sum of the incremental cash flows for both alternatives. Мachine X Мachine Y First Cost -35,000 -90,000 Annual Operating Cost -31,600 -19,400 Salvage Value 8,000 Life, Years 2 4 According to Descartes' rule and Norstrom's criterion, how many i* values in all and how many positive i* are possible, for the cash flow (CF) sequence shown? Year 1 2 3 Net Cash +16,000 -32,000 - 25,000 +50,000 -8,000 Flow, $ Cumulative +16,000 -16,000 -41,000 +9,000 +1.000 CF, $
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