Question: You replace an old machine with a new one costing $7,500. The old one is SALVAGED FOR $1,500. You estimate that with the new machine

 You replace an old machine with a new one costing $7,500.

You replace an old machine with a new one costing $7,500. The old one is SALVAGED FOR $1,500. You estimate that with the new machine your benefit will be $5,000, but the yearly maintenance will be $2,000 as per the contract with the vendor for the next 5 years if your expected IRR is 9%, what is the net worth? Is it worth doing this investment? Use the EUAW Show your work here... Formula, factor, data and the answer B IV AA- IEE 3xx, -2 VX + ** 12pt Paragraph O words Question 11 10 pts Year 10 1 2 3 4 Cash flow 200.000 60,000 50.000 60.000 40.000 What is a simple payback period? Upto 2 decimal

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