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%. Note: Round final answer in two decimal places and show complete solution a. The Net Future Worth of this investment = $ Blank 1 b. Is this purchase a wise investment (type only Yes or No) = Blank 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%. Note: Round final answer in two decimal places and show complete solution a. The Net Future Worth of this investment = $ Blank 1 b. Is this purchase a wise investment (type only Yes or No) = Blank 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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%.
Note: Round final answer in two decimal places and show complete solution
a. The Net Future Worth of this investment = $ Blank 1
b. Is this purchase a wise investment (type only Yes or No) = Blank 2
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