Question: Mercruiser purchases a used, recently upgraded computer numerical control (CNC) machine for turning operations. It costs $ 46,000, and since the machine will increase productivity,


Mercruiser purchases a used, recently upgraded computer numerical control (CNC) machine for turning operations. It costs $ 46,000, and since the machine will increase productivity, the company expects to increase sales by $6,000 per year. Maintenance costs are $1,000 per year starting 1 year after purchase. Every 5 years, the machine will require a software upgrade costing $5,000. Choose the cash flow diagram for the scenario described if Mercruiser uses a 10-year planning horizon. $5,000 $6,000 5 16 8 9 10 $1,000 $46,000 $6,000 0 1 2 4 8 9 10 Y $1,000 $1000+5000 $46,000 o $1,000 8 9 $6,000 $46,000 $5.000 $5,000 $5,000 $5,000 $1,000 0 1 2 3 5 6 7 8 9 10 $6,000 $46,000 $6,000 $1,000 HVH 1 2 3 8 9 10 $5,000 $46,000
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