Question: NEED A FULL NUMERCAL SOLUTON STEP BY STEP WTH THE ANSWER !! Need full numerical solution by hand!! 2. The costs and revenues of 2
| NEED A FULL NUMERCAL SOLUTON STEP BY STEP WTH THE ANSWER !! |

Need full numerical solution by hand!! 2. The costs and revenues of 2 alternatives for a machine are given below. Determine which alternative is economically viable using the present value method when 20.56% annual discount rate compounded 4-month maturity. Parameters 1. Machine 2. Machine Initial investment cost 450,000 $ 600,000 $ 25% 20% Salvage cost (based on initial investment cost) Annual Operating Cost For The First Year 37,500 $ 75,000 $ Annual increase rate of operating cost 18% 22% First Year Income 250,000 $ 450,000 $ Annual decrease rate or amount of Income 5,000 TL 1.5% Economic life 10 years 16 years
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