Question: please solve Question 3 (9 points) Northwest Digital makes various types of transmitters used in marine and military applications. They are considering replacing a CNC
Question 3 (9 points) Northwest Digital makes various types of transmitters used in marine and military applications. They are considering replacing a CNC drilling machine that drills precision holes in circuit boards. The Busan CNC press costs $145,000, requires semi-annual maintenance costing $9,000, and has a resale value of $90,000 after 7 years. The Stuttgart CNC press costs $125,000, requires semi-annual maintenance costing $11,000, and has a resale value of $60,000 after 3 years. To evaluate these options, Northwest uses a rate of 18% APR over the next 7 years. Use the below boxes to put the following items in ORDER: What is the net present value (NPV) of the Busan CNC press? What is the net present value (NPV) of the Stuttgart CNC press? Which machine is a better choice (Busan or Stuttgart)
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