Question: please answer this question short answer is ok Question 2 (8 points) Pasja Electronics produces multi-layered printed circuit boards (PCBs) for use in aeronautic equipment.

please answer this question short answer is ok

please answer this question short answer is ok Question 2 (8 points)

Question 2 (8 points) Pasja Electronics produces multi-layered printed circuit boards (PCBs) for use in aeronautic equipment. Each of the machines being considered has a life of 9 years. The main layering machine requires replacement, and two machines are being considered: Machine A: Initial Cost: $ 180,000 Maintenance cost: Monthly $ 8,000 Resale value end of life: $ 64,000 Machine B: Initial Cost: $180,000 Maintenance cost: Monthly $ 8,000 Resale value end of life: $ 87,000 Pasja Electronics uses a rate of 12.7 % APR (compounded monthly) to evaluate the options. a. What is the NPV of Machine A? b. What is the NPV of Machine B? c. Which machine would you recommend and why

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!