Question: honey well corp. is considering 2 alternative production method. the cost and lives associated with each are shown kin the following table. ignore depresiation and
honey well corp. is considering 2 alternative production method. the cost and lives associated with each are shown kin the following table. ignore depresiation and taxes in answering. the required rate of return is 12%. if honey well replaces the equipment, which method should it buy. year 0 = method 1, 7000, method 2 , 10000. year 1 = method 1 700, method 2 300. year 2 = method 1 700 and method 2 300. year 3 = method 1 625, method 2 300. year 4 = method 1 0 and method 2 300
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