The data for used and new machines are shown below (i = 10%) Used Machine New Machine
No answer yet for this question.
Ask a Tutor
Question:
The data for used and new machines are shown below (i = 10%)
Used Machine | New Machine | |
Initial Cost, $ | -15,000 | - 40,000 |
Annual Cost, $/year | - 8000 | - 2000 |
Salvage Value, $ | 5000 | 10,000 |
Life, years | 2 | 4 |
- Draw the cash flow diagram for both machines.
- Which machine would be selected based on their present worth?
- Determine the capitalized costs for both machines.
Related Book For
Posted Date: