1. An economic analysis is used to determine the profitability of a machine. Assume the minimum attractive...

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1. An economic analysis is used to determine the profitability of a machine. Assume the minimum attractive rate of return (interest rate) is 3%. What is the present worth of this investment alternative?

Initial cost = $11,000

Estimated life = 7 years

Salvage value = 3,800

Annual maintenance cost = 475

Annual income = 1,800

Income gradient = 120

a.PW = $3,500

b.PW = $2,450

c.PW = $2,500

d.PW = $2,350

Related Book For answer-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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Posted Date: Feb 13, 2024 06:36 AM

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1. An economic analysis is used to determine the profitability of a machine. Assume the minimum attractive...

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Cost management a strategic approach

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