The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety...
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The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 -$15,000 -$19,000 -$24,000 -$6,500 -$5,600 -$4,000 2. $6,500 $5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4. -$6,500 -$1,800 -$4,000 -$6,500 + S0 -$5,600 + $2.000 $4,000 + $5,000 What is the future worth of each alternative? Gate 1:$ Gate 2:$ Gate 3: $ IE Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10 Using a future worth analysis with a MARR of 20%/year, determine the preferred gate. Click here to access the TVM Factor Table Calculator Svetor Later The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. End of Year Gate 1 Gate 2 Gate 3 -$15,000 -$19,000 -$24,000 -$6,500 -$5,600 -$4,000 2. $6,500 $5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4. -$6,500 -$1,800 -$4,000 -$6,500 + S0 -$5,600 + $2.000 $4,000 + $5,000 What is the future worth of each alternative? Gate 1:$ Gate 2:$ Gate 3: $ IE Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10 Using a future worth analysis with a MARR of 20%/year, determine the preferred gate. Click here to access the TVM Factor Table Calculator Svetor Later
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Related Book For
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler
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