Question: Could you please find a solution for problem2 part b on excel and with excel formulas Problem 2: (Exercise 6.4 is modified) A company would
Problem 2: (Exercise 6.4 is modified) A company would like to purchase a machine for $375,000 with a life of 10 years. They estimate the salvage value to be 6% of the initial machine cost. Other operating costs are estimated to be $32,500 per year. The interest rate the company uses to justify their investments, namely the MARR is 18% per year compounded yearly. (a) What is the capital recovery cost? (b) What is the minimum amount of annual revenue ($ per year?) that makes this investment an attractive option for the company
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