Question: Please show the step using standard notation factor. Please do not use excel. Generics Perfume Corporation, in the USA, is planning to purchase a solvent
Please show the step using standard notation factor. Please do not use excel.
Generics Perfume Corporation, in the USA, is planning to purchase a solvent extraction machine
for extracting essential oils from flowers. Machine A will cost $ with a resale value of
$ Machine B will cost $ with a resale value of $ For the extraction process,
Machine A will use kg solventday while Machine B will use kg solventday Both machines
will provide an operating revenue of $ per year at working daysyear Cost of solvent
is $kg and both machines will have a year life service. An average tax rate of will be
imposed on any taxable income.
a Tabulate the cash flow after tax series if a straightline depreciation is applied.
Marks
b Determine which machine should be bought by using the cash flow after tax values with the
aftertax MARR is per year.
Marks
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