The company "Delicia S.A." is considering the possibility of acquiring a new chocolate processing machine. Machine G has an initial cost of $ 93,750, an estimated service period of 15 years, at the end of which it will have a residual value of 28.3% of its initial value. In the first year, the cost for maintenance is expected to be $ 7,500, but from the second year, the estimated expenses for repairs and maintenance will be $ 8,000 and so on. Another "C" machine has a starting cost of $ 75,650 and a residual value of 25% of your initial investment at the end of its 15 years of service. Estimated repair and maintenance expenses will be $ 9,500 the first year, $ 9,850 the second, and so on. The "G" machine will provide revenue of $ 1,850 annually. Machine "C" will provide income of $ 2,732 per year. Using an interest rate of 4%, compare these alternatives by present value doing an analysis for extra investment. Leave evidence of the process of the method.
The company "Delicia S.A." is considering the possibility of acquiring a new chocolate processing machine. Machine G has an initial cost of $ 93,750, an estimated service period of 15 years, at the end of which it will have a residual value of 28.3% of its initial value. In the first year, the cost for maintenance is expected to be $ 7,500, but from the second year, the estimated expenses for repairs and maintenance will be $ 8,000 and so on. Another "C" machine has a starting cost of $ 75,650 and a residual value of 25% of your initial investment at the end of its 15 years of service. Estimated repair and maintenance expenses will be $ 9,500 the first year, $ 9,850 the second, and so on. The "G" machine will provide revenue of $ 1,850 annually.
Machine "C" will provide income of $ 2,732 per year. Using an interest rate of 4%, compare these alternatives by
Step by step
Solved in 2 steps with 1 images
