In comparing the machines on a present worth basis, the present worth of machine X, the cost of money is 10% per year, is closest to Machine X Machine Y Initial cost, S -66,000 -46.000 Annual cost, $/year Salvage value, $ Life, years -10,000 -15,000 10,000 24.000 6. 3.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter17: Long-term Investment Analysis
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Problem 10E
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In comparing the machines on a present worth basis, the present worth of machine X, the cost
of money is 10% per year, is closest to
Machine X
Machine Y
Initial cost, $
-66,000
-46,000
Annual cost, $/year
Salvage value, $
Life, years
-10,000
-15,000
10,000
24,000
3.
$-103,908
$-87,840
None of the answers
S-65,270
Transcribed Image Text:In comparing the machines on a present worth basis, the present worth of machine X, the cost of money is 10% per year, is closest to Machine X Machine Y Initial cost, $ -66,000 -46,000 Annual cost, $/year Salvage value, $ Life, years -10,000 -15,000 10,000 24,000 3. $-103,908 $-87,840 None of the answers S-65,270
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