The Green Thumb Seed Company may purchase a new security system for its lab. Each alternative...
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The Green Thumb Seed Company may purchase a new security system for its lab. Each alternative has a 10-year useful life. Which system should be purchased, based on EAW at an interest rate of 6%? Alternative Cost Annual Savings Salvage Value I Spy $120,000 $20,000 $10,000 Gotcha 140,000 22,000 25,000 The cost may be 20% higher or 10% lower, the annual savings may be either 40% higher or lower, and the salvage value may be as as high as shown or as low as zero. Construct a spiderplot for the difference in the EAW (the incremental EAW) for the two security systems. For example, at the base case, the incremental EAW would be -2000+pmt(6%,10,20000,-15000). The Green Thumb Seed Company may purchase a new security system for its lab. Each alternative has a 10-year useful life. Which system should be purchased, based on EAW at an interest rate of 6%? Alternative Cost Annual Savings Salvage Value I Spy $120,000 $20,000 $10,000 Gotcha 140,000 22,000 25,000 The cost may be 20% higher or 10% lower, the annual savings may be either 40% higher or lower, and the salvage value may be as as high as shown or as low as zero. Construct a spiderplot for the difference in the EAW (the incremental EAW) for the two security systems. For example, at the base case, the incremental EAW would be -2000+pmt(6%,10,20000,-15000).
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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