ngineering Ing three aiter Salety gales in the hachine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, perating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 -$6,500 -$5,600 -$4,000 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 -$6,500 + $0 -$5,600 + $2,000 -$4,000 + $5,000 how the comparisons and internal rates of return used to make your decision:

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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The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. Show the comparisons and internal rates of return used to make your decision:

The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the
machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs,
operating costs, and salvage values over a 5-year planning horizon are shown below.
End of Year Gate 1
Gate 2
Gate 3
-$15,000
-$19,000
-$24,000
1
-$6,500
-$5,600
-$4,000
2
-$6,500
-$5,600
-$4,000
3
-$6,500
-$5,600
-$4,000
4
-$6,500
-$5,600
-$4,000
-$6,500 + $0
-$5,600 + $2,000
-$4,000 + $5,000
Show the comparisons and internal rates of return used to make your decision:
LO
Transcribed Image Text:The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 2 -$6,500 -$5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 -$6,500 + $0 -$5,600 + $2,000 -$4,000 + $5,000 Show the comparisons and internal rates of return used to make your decision: LO
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