Question: All parts A, B , C Data for the used and new machines is shown below. Using an interest rate of 10% determine the following:
All parts A, B , C Data for the used and new machines is shown below. Using an interest rate of 10% determine the following: Which machine would be selected based on its present worth if both the machines had equal lives of 3 years? Draw the cash flow diagram for both the machines with equal lives. If the machine lives were different; machine - 3 years and machine B - 6 years which machine would then be selected based on their present worth? Draw the cash flow diagram for both machines with unequal lives. Capitalized cost for both machines
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