Whales Inc. just invested in revolutionary electrical shock technology that is guaranteed to exterminate any flying insect. The equipment cost $16,250 and has a four-year usable life. The equipment will generate $6,500 in revenue each year. The cost of operating the machine is projected to be $500 the first year and $250 per year after that. When the equipment is disposed of, it is estimated to be worth $800. The company set the MARR at 8%. a. The Net Future Worth of this investment = $ Blank 1 b. Is this purchase a wise investment (type only Yes or No) = Blank 2 Note: Round final answer in two decimal places. No need to write the Unit of Measure. No need to put a comma. Blank 1 Add your answer Blank 2 Add your answer
Whales Inc. just invested in revolutionary electrical shock technology that is guaranteed to exterminate any flying insect. The equipment cost $16,250 and has a four-year usable life. The equipment will generate $6,500 in revenue each year. The cost of operating the machine is projected to be $500 the first year and $250 per year after that. When the equipment is disposed of, it is estimated to be worth $800. The company set the MARR at 8%. a. The Net Future Worth of this investment = $ Blank 1 b. Is this purchase a wise investment (type only Yes or No) = Blank 2 Note: Round final answer in two decimal places. No need to write the Unit of Measure. No need to put a comma. Blank 1 Add your answer Blank 2 Add your answer
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Question 2
Whales Inc. just invested in revolutionary electrical
shock technology that is guaranteed to exterminate any
flying insect. The equipment cost $16,250 and has a
four-year usable life. The equipment will generate $6,500
in revenue each year. The cost of operating the machine
is projected to be $500 the first year and $250 per year
after that. When the equipment is disposed of, it is
estimated to be worth $800. The company set the MARR
at 8%.
a. The Net Future Worth of this investment = $ Blank 1
b. Is this purchase a wise investment (type only Yes or
No) = Blank 2
Note: Round final answer in two decimal places. No need to write the
Unit of Measure. No need to put a comma.
Blank 1 Add your answer
Blank 2 Add your answer
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