A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides...
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A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides the following data. Eco total annual costs annual sales 3.600.000,00 € 4.000.000,00 € 3.000.000,00 € € 8 purchasing price machine residual value useful life (years) The cost of capital are 10%. How would you decide using the • profit comparison calculation and • the profitability comparison? When will the machines be amortized? Top 3.700.000,00 € 4.200.000,00 € 4.500.000,00 € € 8 A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides the following data. Eco total annual costs annual sales 3.600.000,00 € 4.000.000,00 € 3.000.000,00 € € 8 purchasing price machine residual value useful life (years) The cost of capital are 10%. How would you decide using the • profit comparison calculation and • the profitability comparison? When will the machines be amortized? Top 3.700.000,00 € 4.200.000,00 € 4.500.000,00 € € 8
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Machine Eco Profit per year Annual Sales Total Annual Costs 4000000 3600000 400... View the full answer
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