The New York Post is evaluating buying a new machine for newspaper distribution. They have a MARR of 10% and the machine is going to be assessed for 20 years. The initial cost of 85 million. Operation and management 2 million first-year and gradient of 200,000 per year. The machine represents a 7 million benefit first year and a gradient of 8% per year. Make the equivalence models, make the inflation analysis for current and consistent dollars, justify the inflation percent and conclude (buy it or no).
The New York Post is evaluating buying a new machine for newspaper distribution. They have a MARR of 10% and the machine is going to be assessed for 20 years. The initial cost of 85 million. Operation and management 2 million first-year and gradient of 200,000 per year. The machine represents a 7 million benefit first year and a gradient of 8% per year. Make the equivalence models, make the inflation analysis for current and consistent dollars, justify the inflation percent and conclude (buy it or no).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The New York Post is evaluating buying a new machine for newspaper distribution. They have a MARR of 10% and the machine is going to be assessed for 20 years. The initial cost of 85 million. Operation and management 2 million first-year and gradient of 200,000 per year. The machine represents a 7 million benefit first year and a gradient of 8% per year. Make the equivalence models, make the inflation analysis for current and consistent dollars, justify the inflation percent and conclude (buy it or no).
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