Question: 5. A new machine will cost $17,000 and will have an estimated salvage value of $14,000 in five years. Special tools for the new machine
5. A new machine will cost $17,000 and will have an estimated salvage value of $14,000 in five years. Special tools for the new machine will cost SS000 and will have 2 resale value of $2500 at the end of five years. Maintenance costs are estimated at $200 per year. What will be the average annual cost of ownership during the next five years if interest is 6%? 6 An investor wishes to invest $40,000. Venture A, re- quiring $40.000, will reaun 8%. Veoare B, requiring $10,000, will return 15%. What return on the remaining 530,000 is required to equal the overall profitability of vene ture A
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