Requlred Informatlon Parker Hannifin of Cleveland, Ohlo, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of Its production lines for a new contract, but It plans to sell the equipment at or before ts expected life is reached at an estimated market value for used equipment. Select between the two optlons using the corporate MARR of 15% per year and a future worth analysis for the expected use period. Option First Cost AOC. per Year Expected Market Value Expected Use E S-64,000 $-22.000 S-74,000 S-24,000 $8,500 6 years $7.500 3 years The future worth of option D I S The future worth of option E IS S Option E is selected.

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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Parker Hannifin of Cleveland, Ohto, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one
of Its production lines for a new contract, but It plans to sell the equipment at or before its expected life is reached at an
estimated market value for used equipment.
Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period.
Option
First Cost
AOC. per Year
Expected Market Value
Expected Use
S-64,000
$-22,000
S-74,000
S-24,000
$8,500
6 years
$7,500
З уears
The future worth of option D Is S
The future worth of option E 1s S
Option E
is selected.
Transcribed Image Text:Required Information Parker Hannifin of Cleveland, Ohto, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of Its production lines for a new contract, but It plans to sell the equipment at or before its expected life is reached at an estimated market value for used equipment. Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period. Option First Cost AOC. per Year Expected Market Value Expected Use S-64,000 $-22,000 S-74,000 S-24,000 $8,500 6 years $7,500 З уears The future worth of option D Is S The future worth of option E 1s S Option E is selected.
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