Question: please help to solve below question and provide explained details thanks! PARC Co. has asked you to recommend a new nutcracker machine. After months of

please help to solve below question and provide explained details thanks!

please help to solve below question and provide explained details thanks! PARC

PARC Co. has asked you to recommend a new nutcracker machine. After months of hard research, you have collected the following data: Discussions with the accounting department reveal that a loan must be secured to purchase any machine. The loan data are as follows: The loan payments will be made annually with 12% interest. PARC co. assumes MARR = 15% Using the Net Present Worth (NPW) analysis, answer the following questions: The analysis period if you are going to use NPW is close to: a) 24 years b) 21 years c) 12 years d) 18 years The interest rate that you are going to use in the calculation is: a) 12% b) 15% c) 30% d) 13% The NPW for KRAX type, using only 6 years cash flow, is close to: a) $40, 500 b) $15, 500 c) $11,000 d) $10, 110 The NPW for SPLIT-NUT type, using only 9 years cash flow, is close to: a) $10, 500 b) $12, 500 c) $11, 200 d) $10, 100 The NPW for KRAX type, in the analysis period, is close to: a) $10, 510 b) $65, 300 c) $61, 900 d) $14, 250 Recommend which machine to purchase: a) SPLIT-NUT b) KRAX c) Both d) None

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