2. A machine would cost $150,000, and would generate revenues of $28,000 per year. However, O&M...
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2. A machine would cost $150,000, and would generate revenues of $28,000 per year. However, O&M costs would be $6,500 per year. The machine would last 9 years and your MARR is 7% annual rate compounded annually. a. What is the Net Present Value of this potential investment? (5 points) b. Should you invest in the machine? Why or why not? (5 points) 2. A machine would cost $150,000, and would generate revenues of $28,000 per year. However, O&M costs would be $6,500 per year. The machine would last 9 years and your MARR is 7% annual rate compounded annually. a. What is the Net Present Value of this potential investment? (5 points) b. Should you invest in the machine? Why or why not? (5 points)
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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