ppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of $3,100,000. TH quite old and has no salvage value. The market value for the new palletizer is estimated to be $290,000 after seven years. One million pallets w palletizer each year during the seven-year expected project life. What net savings per pallet (.e, total savings less expenses) will have to be aletizer to justify this purchase in view of a MARR of 17% per year? Use the AW method Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year.
ppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of $3,100,000. TH quite old and has no salvage value. The market value for the new palletizer is estimated to be $290,000 after seven years. One million pallets w palletizer each year during the seven-year expected project life. What net savings per pallet (.e, total savings less expenses) will have to be aletizer to justify this purchase in view of a MARR of 17% per year? Use the AW method Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year.
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
Problem 1PS
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M1
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Suppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of $3,100,000. The existing palletizer
is quite old and has no salvage value. The market value for the new palletizer is estimated to be $290,000 after seven years. One million pallets will be handled by
the palletizer each year during the seven-year expected project life. What net savings per pallet (.e., total savings less expenses) will have to be generated by the
palletizer to justify this purchase in view of a MARR of 17% per year? Use the AW method.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 17% per year.
The net savings required to be generated by the new palletizer to justify its purchase are $per pallet. (Round to the nearest cent)
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