Question: Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table Original

Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table Original Cost Labor per year Maintenance per your Salvage value Machine A $10,000 $2,000 54.000 $2.400 Machines $20.000 54,800 $1,200 $7.200 He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to make 8% on investments no more rieky than this one 3. Labor and maintenance are paid at the end of the year. The NPV for Machine A = $fround your response to the nearest whole number and include a minus signal necessary The NPV for Machine As (round your response to the nearest whole number and include a minus sign if necessary). The NPV for Machine -s (round your response to the nearest whole number and include a minus sign if necessary), Using the net present value as the basis of comparing the machines, Tim should recommend Machine B Original Cost Labor per year Maintenance per year Salvage value Machine A $10,000 $2,000 $4,000 $2,400 $20,000 $4,800 $1,200 $7,200
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