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Altrax Manufacturing is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $160,000 a useful life of 12 years and a $10.000 residual value. Altrax will realize $15.400 in annual savings for each of the machine's 12 - year useful life. Given the company's 5% required rate of return, the new machine will have a net present value (NPV) of Present Value of $1 Periods 3% 4% 5% 10 0.744 0.676 0614 11 0.722 0.650 0.585 12 0.701 0.625 0.557 13 0 681 0.601 0.530 14 0.661 0.577 0.555 0.505 15 0 642 0.481 O A. ($23,510) O B. ($17,940) OC. ($142.060) O D. ($29.080) Altrax Manufacturing is considering the purchase of a new machine to use in its packing department. The new machine will have an initial cost of $160,000 a useful life of 12 years and a $10.000 residual value. Altrax will realize $15.400 in annual savings for each of the machine's 12 - year useful life. Given the company's 5% required rate of return, the new machine will have a net present value (NPV) of Present Value of $1 Periods 3% 4% 5% 10 0.744 0.676 0614 11 0.722 0.650 0.585 12 0.701 0.625 0.557 13 0 681 0.601 0.530 14 0.661 0.577 0.555 0.505 15 0 642 0.481 O A. ($23,510) O B. ($17,940) OC. ($142.060) O D. ($29.080)
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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