Q-1 C Co., has asked you to recommend a new nutcracker machine. After months of hard re- ch, you have collected the following data: KRAX SPLIT-NUT Years 6. 9. Cost (FC) efit, Yearly (AB) ient (AB G) Gradient (M&OG) O Cost (M&O) ge Value ussions with the accounting department reveal that a loan must be secured to purchase an nine. The loan data is as follows: $202,000.00 73,000.00 1,200.00 $285,000.00 88,000.00 1,300.00 1,100.00 34,000.00 48,000.00 600.00 18,000.00 42,000.00 KRAX SPLIT-NUT n Payment (% of FC) Period, Years Payment pan payments will be made annually. The lender will charge 12% interest with annual com ding. Calculate the Net Present Worth of each machine and recommend which machine to nase. Use a MARR of 15%. 30% 30% 9. $34,392.11 $37,441.93
Q-1 C Co., has asked you to recommend a new nutcracker machine. After months of hard re- ch, you have collected the following data: KRAX SPLIT-NUT Years 6. 9. Cost (FC) efit, Yearly (AB) ient (AB G) Gradient (M&OG) O Cost (M&O) ge Value ussions with the accounting department reveal that a loan must be secured to purchase an nine. The loan data is as follows: $202,000.00 73,000.00 1,200.00 $285,000.00 88,000.00 1,300.00 1,100.00 34,000.00 48,000.00 600.00 18,000.00 42,000.00 KRAX SPLIT-NUT n Payment (% of FC) Period, Years Payment pan payments will be made annually. The lender will charge 12% interest with annual com ding. Calculate the Net Present Worth of each machine and recommend which machine to nase. Use a MARR of 15%. 30% 30% 9. $34,392.11 $37,441.93
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q-1
PARC Co., has asked you to recommend a new nutcracker machine. After months of hard re-
search, you have collected the following data:
Data
KRAX
SPLIT-NUT
Life, Years
First Cost (FC)
Benefit, Yearly (AB)
Gradient (AB G)
M&O Gradient (M&OG)
M&O Cost (M&O)
Salvage Value
Discussions with the accounting department reveal that a loan must be secured to purchase any
machine. The loan data is as follows:
Data
$202,000.00
$285,000.00
73,000.00
1,200.00
88,000.00
1,300.00
1,100.00
34,000.00
48,000.00
600.00
18,000.00
42,000.00
KRAX
SPLIT-NUT
Down Payment (% of FC)
Loan Period, Years
Loan Payment
The loan payments will be made annually. The lender will charge 12% interest with annual com-
pounding. Calculate the Net Present Worth of each machine and recommend which machine to
purchase. Use a MARR of 15%.
30%
30%
$34,392.11
$37,441.93
Q-2
The president of GE Healthcare is considering an
.. ..
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