Repairs for this machine will average 25,000 per year and operating expenses will be 30,000. if money is worth 8% effective, which is more economical to purchase? How much will be saved each year?
Repairs for this machine will average 25,000 per year and operating expenses will be 30,000. if money is worth 8% effective, which is more economical to purchase? How much will be saved each year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Engr. Diamse was made to evaluate the following conditions. A packaging equipment that cost 500,000 will last for 20 years and have a scrap value that time of 50,000. Repair will average 30,000 per year in which the operating expenses to include the operator will be 20,000 per month. The second packaging equipment will produce twice as many units per year. It cost 1,500,000 and must be replaced at the end of 25 years at a cost of 1,000,000. Repairs for this machine will average 25,000 per year and operating expenses will be 30,000. if money is worth 8% effective, which is more economical to purchase? How much will be saved each year?
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