Question: You are considering a CNC machine. This machine will have an estimated service life of 8 years, with a salvage value of 15% of the

 You are considering a CNC machine. This machine will have an
estimated service life of 8 years, with a salvage value of 15%

You are considering a CNC machine. This machine will have an estimated service life of 8 years, with a salvage value of 15% of the investment cost its expected savings from annual operating and maintenance costs are estimated to be $60.000. TO expect a 12% rate of return on investment, what would be the maximum amount that you are willing to pay for the machine? C A C = $415 824 OB.C = $265,537 OCC = $386.623 C = $317.277 D Use this information to answer questions 4 and 5 Consider the following two mutually exclusive alternatives: A B 0 -$18,000 -$21,100 1 $7,500 $6,000 2 $7,800 $14,000 3 $6,650 $7.000 Determine the IRR on the incremental investment. A 18.41% B. 25.62% 0.22.46% OD. 15.37%

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