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TABLE 6.8 Estimates for Alternative Equipment, Example 6.7 Alternative 1 2 3 4 First cost, $ - 80,000 -50,000 - 145,000 -20,000 - 28,000 - 16,000 Annual cost, $/year Annual revenue, $/year -26,000 -21,000 61,000 43,000 51,000 29,000 Life, years 4 4 4

TABLE 6.8 Estimates for Alternative Equipment, Example 6.7 Alternative 1 2 3 4 First cost, $ - 80,000 -50,000 - 145,000 -20,000 - 28,000 - 16,000 Annual cost, $/year Annual revenue, $/year -26,000 -21,000 61,000 43,000 51,000 29,000 Life, years 4 4 4

Essentials Of Investments
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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Harold owns a construction company that subcontracts to international power equipment corporations such as GE, ABB, Siemens, and LG. For the last 4 years he has leased crane and lifting equipment for $32,000 annually. He now wishes to purchase similar equipment. Use an MARR of 12% per year to determine if any of the options detailed as shown are financially justified.

TABLE 6.8 Estimates for Alternative Equipment, Example 6.7 Alternative 1 2 3 4 First cost, $ - 80,000 -50,000 - 145,000 -20,000 - 28,000 - 16,000 Annual cost, $/year Annual revenue, $/year -26,000 -21,000 61,000 43,000 51,000 29,000 Life, years 4 4 4
Transcribed Image Text:TABLE 6.8 Estimates for Alternative Equipment, Example 6.7 Alternative 1 2 3 4 First cost, $ - 80,000 -50,000 - 145,000 -20,000 - 28,000 - 16,000 Annual cost, $/year Annual revenue, $/year -26,000 -21,000 61,000 43,000 51,000 29,000 Life, years 4 4 4
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