Michelin is attempting economically model of a curing press for their facilities. The curing models which are feasible are as in table given. Each curing press has life of loo years which are and no Salvage value. The company has a total capital budget off $ 350, 000 and a MARR of 15.3% which machine should they buy ?

 

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Model of Curing Press PLC LT RAV 4 PSV DLX PLTX AWD Annual Reeve Investment $7,200 2 B1000 BG 000 .45,000 50,000 52,000 $60,000 $100,000 126 262 $200,000 187. $220,000 i $300,000 S 385 1000 20145 16.67 20.50 Model of Curing Press PLC LT RAV 4 PSV DLX PLTX AWD Annual Reeve Investment $7,200 2 B1000 BG 000 .45,000 50,000 52,000 $60,000 $100,000 126 262 $200,000 187. $220,000 i $300,000 S 385 1000 20145 16.67 20.50

Answer rating: 100% (QA)

The calculation for the net present value NPV of each curing press PLC Annual revenue 7200 Investment 60000 Interest rate i 12 Lifespan 10 years The N... View the full answer