You buy a machine that costs $225k. It has a 10-yr lifespan, after which, it will...
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You buy a machine that costs $225k. It has a 10-yr lifespan, after which, it will sell for $100k. The new machine will bring in $190k each year, but maintenance will cost $85k/yr. It also needs a huge overhaul at year 6 that costs $75k. Draw a CFD. 2. Draw a CFD based on the information below. A. 1st cost: $20k B. O&M: $2k 1st year increasing by $200/yr. C. Overhaul: $1,500 at year 3 HE D. Revenue: $7,500/yr E. N: 6 yrs You buy a machine that costs $225k. It has a 10-yr lifespan, after which, it will sell for $100k. The new machine will bring in $190k each year, but maintenance will cost $85k/yr. It also needs a huge overhaul at year 6 that costs $75k. Draw a CFD. 2. Draw a CFD based on the information below. A. 1st cost: $20k B. O&M: $2k 1st year increasing by $200/yr. C. Overhaul: $1,500 at year 3 HE D. Revenue: $7,500/yr E. N: 6 yrs
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ANSWER Lets start by drawing a Cash Flow Diagram CFD for the first scenario Scenario 1 Machine Cost 225000 Lifespan 10 years Resale Value 100000 Annua... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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