Nighhigh Newsagent wants to replace its cash register and is currently evaluating two models that seem...
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Nighhigh Newsagent wants to replace its cash register and is currently evaluating two models that seem reasonable. The information on the two alternatives, CR1000 and CRX, is shown in the table. First Cost Annual Savings Annual Maintenance Cost Service Life Scrap value CR1000 $710 $225 $45 in year 1, increasing by $14 each year thereafter 4 years $100 CRX $900 $440 $50 6 years $200 a. If Nighhigh Newsagent's MARR is 10 percent, which type of cash register should it choose? Use the present worth method. b. For the less preferred type of cash register found in part (a), what scrap value would make it the preferred choice? compound interest factors for discrete compounding periods when i = 10%. a. The present worth of the CR1000 is $ - 284.62. The present worth for CRX is $ 1425.95. Nighhigh Newsagent should choose the CRX cash register. (Round to the nearest cent as needed.) b. The scrap value that would make the least preferred choice found in part (a) the preferred choice would have to be greater than $ (Round to the nearest cent as needed.) Nighhigh Newsagent wants to replace its cash register and is currently evaluating two models that seem reasonable. The information on the two alternatives, CR1000 and CRX, is shown in the table. First Cost Annual Savings Annual Maintenance Cost Service Life Scrap value CR1000 $710 $225 $45 in year 1, increasing by $14 each year thereafter 4 years $100 CRX $900 $440 $50 6 years $200 a. If Nighhigh Newsagent's MARR is 10 percent, which type of cash register should it choose? Use the present worth method. b. For the less preferred type of cash register found in part (a), what scrap value would make it the preferred choice? compound interest factors for discrete compounding periods when i = 10%. a. The present worth of the CR1000 is $ - 284.62. The present worth for CRX is $ 1425.95. Nighhigh Newsagent should choose the CRX cash register. (Round to the nearest cent as needed.) b. The scrap value that would make the least preferred choice found in part (a) the preferred choice would have to be greater than $ (Round to the nearest cent as needed.)
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