TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 End of Year 2 4 Annual revenues less expenses Abandonment value of machine" $6,200 $5,200 $4,000 $2,200 $2,000 $2,000 $2,000 $2,000 $2,000 a Estimated MV.
TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 End of Year 2 4 Annual revenues less expenses Abandonment value of machine" $6,200 $5,200 $4,000 $2,200 $2,000 $2,000 $2,000 $2,000 $2,000 a Estimated MV.
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
Problem 1PS
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Question
A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life Table. The firm’s MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its
current MV is $7,500 and it won’t be used for more than five years.
Transcribed Image Text:TABLE P9-15 Cash Flows and Abandonment Values for
Problem 9-15
End of Year
2
4
Annual revenues less expenses
Abandonment value of machine" $6,200 $5,200 $4,000 $2,200
$2,000 $2,000 $2,000 $2,000 $2,000
a Estimated MV.
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