Question: Problem # 2 A company bought a slicing machine ( milling machine) by $ 100,000. The company has intend to use the machine for the





Problem # 2 A company bought a slicing machine ( "milling machine") by $ 100,000. The company has intend to use the machine for the next 5 years . It is expected that the machine will save the company $35,000 during the first year operation. Thereafter it is expected that the annual savings decrease by 3% each year because maintenance costs. Assuming operation 3.000 hours per year and that the machine will not have residual value ("Salvage Value") at the end of 5 years, determine the equivalent savings per hour of operation an interest 14% compounded annual Set the graphics for this situation. Set the graphics for this situation. set the Net Present Value graphed for flows above. set the annuity Equivalent Present Value calculated above. Set savings equivalent per hour of operation
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