Question: please i need help on these problemss CHAP. 9] CHOOSING AMONG INVESTMENT ALTERNATIVES 91 Two alternative cleaning machines are being considered as replacements for an
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please i need help on these problemss
CHAP. 9] CHOOSING AMONG INVESTMENT ALTERNATIVES 91 Two alternative cleaning machines are being considered as replacements for an older, worn-out cleaner. The cash flows for the two mutually exclusive alternatives are presented in Table 9-17, the MARR is 10%. (a) Compute the present-worth difference of value (APW) between the two machines. (b) Compute the incremental rate of return (Ai) on the investment difference between the two machines. (c) Which machine should be purchased? 9.36 Ans. (a) $816.33; (b) 37.9%; (c) machine Table 9-17 End of Machine Year Machine #2 #1 0-$2000028000 4 864.60 4 864.60 4 864.60 4 864.60 4 864.60 4 864.60 8419.88 8 419.88 8 419.88 8419.88 8 419.88 8419.88 4 CHAP. 9] CHOOSING AMONG INVESTMENT ALTERNATIVES 91 Two alternative cleaning machines are being considered as replacements for an older, worn-out cleaner. The cash flows for the two mutually exclusive alternatives are presented in Table 9-17, the MARR is 10%. (a) Compute the present-worth difference of value (APW) between the two machines. (b) Compute the incremental rate of return (Ai) on the investment difference between the two machines. (c) Which machine should be purchased? 9.36 Ans. (a) $816.33; (b) 37.9%; (c) machine Table 9-17 End of Machine Year Machine #2 #1 0-$2000028000 4 864.60 4 864.60 4 864.60 4 864.60 4 864.60 4 864.60 8419.88 8 419.88 8 419.88 8419.88 8 419.88 8419.88 4
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