Question: Question 2, Problem 7-41 (algorithmic) Part 1 of 3 HW Score: 80%, 8 of 10 points Points: 0 of 2 Save Two alterative machines

Question 2, Problem 7-41 (algorithmic) Part 1 of 3 HW Score: 80%,8 of 10 points Points: 0 of 2 Save Two alterative machines

Question 2, Problem 7-41 (algorithmic) Part 1 of 3 HW Score: 80%, 8 of 10 points Points: 0 of 2 Save Two alterative machines will produce the same product, but one is capable of higher-quality work, which can be expected to retum greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 30%, and an after-tax MARR of 11% Capital investment Life Machine A $22,000 11 years Machine B $36,000 9 years Terminal BV (and MV) $4,500 Annual receipts Annual expenses $149,000 $144,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year $2,000 $194,000 $177,000 Calculate the AW value for the Machine A AWA (11%) (Round to the nearest dolar) Compound Amount Present Factor Worth Factor Discrete Compounding; /- 11% Single Payment Compound Amount Factor Uniform Series Sinking Prosent Worth Factor Fund Factor Capital Recovery Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PLA AIF AIP 1 1.1100 0.9009 1.0000 0.9009 1.0000 1.1100 23 1.2321 0.8116 2.1100 1.7125 0.4739 0.5839 3 1.3676 0.7312 3.3421 2.4437 0.2992 0.4092 4 1.5181 0.6587 4.7097 3.1024 0.2123 0.3223 5 1.6851 0.5935 6.2278 3.6959 0.1606 0.2706 6 1.8704 0.5346 7.9129 4.2305 0.1264 0.2364 7 2.0762 0.4817 9.7833 4.7122 0.1022 0.2122 8 2.3045 0.4339 11.8594 5.1461 0.0843 0.1943 9 2.5580 0.3909 14.1640 5.5370 0.0706 0.1806 10 2.8394 0.3522 16.7220 5.8892 0.0598 0.1698 11 3.1518 0.3173 19.5614 6.2065 0.0511 0.1611 12 3.4985 0.2858 22.7132 6.4924 0.0440 0.1540 13 3.8833 0.2575 26.2116 6.7499 0.0382 0.1482 14 4.3104 0.2320 30.0949 6.9819 0.0332 0.1432 15 4.7846 0.2090 34.4054 7.1909 0.0291 0.1391

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!