Question: Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of $31279 and annual expenses of $9501 that will increase
Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of $31279 and annual expenses of $9501 that will increase by $467 per year. It will require an overhaul at the end of year 6 at a cost of $6107. The Flownator will save $19262 per year in labor costs. The Flownator has a salvage value of $8475 and a lifespan of 10 years. The YogGoo300 has a first cost of $24866 and annual expenses of $3522 that will increase by 7% per year. The YogGoo300 will save Flo's $10561 per year in labor costs. The YogGoo300 has a lifespan of 6 years. What must the salvage value of the YogGoo30 be to make it equally desirable to the Flownator? Use a MARR of 7% to make your calculation. Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point (".").
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MARR 7 Flownator option first cost 31279 annual expenses 9501 increase by 467 per year overhaul at t... View full answer

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