Merry Industries is considering a new piece of equipment for a project lasting 10 years with details as shown below. The costs and benefits are expected to keep increasing with the inflation rate even when a new machine is put into operation. Taking these into account, what is the annual worth that the company can expect from the machine? Initial cost MARR Inflation rate Life Project life Machine value today with life of 3 years Machine value today with life of 7 years First year costs First year benefits Group of answer choices $7,823 $8,246 $5,634 $6,051 $65,000 12% 3% 7 10 $24,500 $13,500 $7,200 $25,800 pycy pycy years years

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Aa13 

Subject - economics 

 

Merry Industries is considering a new piece of equipment for a project lasting 10 years with details as
shown below. The costs and benefits are expected to keep increasing with the inflation rate even when a
new machine is put into operation. Taking these into account, what is the annual worth that the company
can expect from the machine?
Initial cost
MARR
Inflation rate
Life
Project life
Machine value today with life of 3 years
Machine value today with life of 7 years
First year costs
First year benefits
Group of answer choices
$7,823
$8,246
$5,634
$6,051
$65,000
12%
3%
7
10
$24,500
$13,500
$7,200
$25,800
русу
pycy
years
years
Transcribed Image Text:Merry Industries is considering a new piece of equipment for a project lasting 10 years with details as shown below. The costs and benefits are expected to keep increasing with the inflation rate even when a new machine is put into operation. Taking these into account, what is the annual worth that the company can expect from the machine? Initial cost MARR Inflation rate Life Project life Machine value today with life of 3 years Machine value today with life of 7 years First year costs First year benefits Group of answer choices $7,823 $8,246 $5,634 $6,051 $65,000 12% 3% 7 10 $24,500 $13,500 $7,200 $25,800 русу pycy years years
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