Ridgely Custom Metal Products (RCMP) must purchase a new tube bender. They consider three models with...

 

Transcribed Image Text:

Ridgely Custom Metal Products (RCMP) must purchase a new tube bender. They consider three models with costs and benefits as per the following table: First Cost Economic Life Yearly Net Savings Salvage Value Model T $100 000 5 years $50 000 $20 000 A 150 000 5 years 3 years 60 000 30 000 200 000 75 000 100 000 RCMP's after-tax MARR is 11 percent and the corporate tax rate is 52 percent. A tube bender is a CCA Class 8 asset with a depreciation rate of 20%. Using the present worth method and the least-cost multiple of the service lives, which tube bender should it buy? Show all calculations. Ridgely Custom Metal Products (RCMP) must purchase a new tube bender. They consider three models with costs and benefits as per the following table: First Cost Economic Life Yearly Net Savings Salvage Value Model T $100 000 5 years $50 000 $20 000 A 150 000 5 years 3 years 60 000 30 000 200 000 75 000 100 000 RCMP's after-tax MARR is 11 percent and the corporate tax rate is 52 percent. A tube bender is a CCA Class 8 asset with a depreciation rate of 20%. Using the present worth method and the least-cost multiple of the service lives, which tube bender should it buy? Show all calculations.

Answer rating: 100% (QA)

45 madel x has the least equaled annudl cost of Jhe highest Savin... View the full answer