Question: if someone would please help me solve the (camera 2) portion of the question i will apperciate it. i only have 20 minutes left and
Problem C-3A (Algo) Determine present value alternatives (LO C-3, C-5) Hollywood Tabloid needs a new state-of-the-art camera to produce its monthly magazine. The company is looking at two cameras that are both capable of doing the job and has determined the following: Camera 1 costs $4,100. It should last for eight years and have annual maintenance costs of $280 per year. After eight years, the magazine can sell the camera for $210. Camera 2 costs $3,600. It will also last for eight years and have maintenance costs of $710 in year three $900 in year five, and $1,000 in year seven. After eight years, the camera will have no resale value. (EV of $1. PV of $1. EVA of $1. and PVA of $1 (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Required: 1-a. Assume that an interest rate of 10% properly reflects the discount rate in this situation and that maintenance costs are paid at the end of each year. Determine the total cost of cameras. 1-b. Which camera should Hollywood Tabloid purchase? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Assume that an interest rate of 10% properly reflects the discount rate in this situation and that maintenance costs are paid at the end of each year. Determine the total cost of cameras. Total Cost $ 5.495.81 Camera 1 Camera 2 RA Reg 18 )
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
