The purchase price of new CNC machine is $ 80,000 and its annual operating cost is $ 5000. The machine has a life of 10 years with $ 30,000 salvage value. It is expected to generate $ 20,000 in revenues in each year of its life. The company pays 30% tax. Calculate the Net Present Value when MARR is 8%, 10% and 12%. Use straight line depreciation Method

1.1What is the Net Present Worth when MARR is 12%

1.2What is the Present Worth Benefit when MARR is 8%

1.3Which are the most appropriate factors to be used in this problem?

1.4How much tax would have been paid at the end of 10 years? (Cumulative)

1.5What is the correct factor for P/A when MARR is 10%

1.6What will be the book value of the CNC Machine at the end of year 6

1.7What is the present worth of salvage value when MARR is 8%

Answer rating: 100% (QA)

Calculating Net Present Value NPV and other parameters for CNC Machine 11 Net Present Value NPV when ... View the full answer