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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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The Uzman Rolling Mill wants to buy a new drill to use in the workshop. As a result of the studies, the data in the table below were found. According to these data, what will be present value (TV) of alternative B?

 

For Alternative B;

Purchase Cost= 7000

Annual Operating Expense= 5000

Scrap Value= 1200

Economic Life= 2

Capital Cost = 8%

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