Question: * * * EXCEL FORMULAS ONLY * * * The ZZZ Company is considering investing in a new machine for one of its factories. The
EXCEL FORMULAS ONLY
The ZZZ Company is considering investing in a new machine for one of its factories. The company can choose either Machine A or Machine B The life span of each machine is years, and depreciation is straightline to zero salvage value. The widgets produced by the machines are sold for $ each. The company has a cost of capital of and its tax rate is
a If the company manufactures units per year, which machine should it buy?
b Plot a graph showing the profitability of investment in each machine type depending on the annual production.
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