Crush Cola Company must purchase a bottle-capping machine. The following is known about the machine and...
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Crush Cola Company must purchase a bottle-capping machine. The following is known about the machine and about possible cash flows. First cost Annual savings Annual costs Salvage value p=.30 $40,000 2,000 7,000 4,000 p=.50 $40,000 3,500 5,000 5,000 p=.20 $40,000 5,000 4,000 6,500 The machine is expected to have a useful life of 10 years. Crush Cola Company has a MARR of 6%. Determine the net present worth (NPW) of the machine. Crush Cola Company must purchase a bottle-capping machine. The following is known about the machine and about possible cash flows. First cost Annual savings Annual costs Salvage value p=.30 $40,000 2,000 7,000 4,000 p=.50 $40,000 3,500 5,000 5,000 p=.20 $40,000 5,000 4,000 6,500 The machine is expected to have a useful life of 10 years. Crush Cola Company has a MARR of 6%. Determine the net present worth (NPW) of the machine.
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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