Your friend is considering a new exhaust system for his Lamborghini Diablo. The estimates from the...
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Your friend is considering a new exhaust system for his Lamborghini Diablo. The estimates from the two shops are shown in the following table. Besides installation, shop Y includes a full replacement warranty for 4 years in the quote. Since money does not appear to be a problem for your friend, and he asked you about the economics of the two quotes, which should he choose based on annual worth values and an interest rate of 12% per year? Shop Installed cost, S Total AOC, S/year Salvage value, $ Life, years X -2,500 -1,200 250 2 Y -2,900 -900 800 4 The annual worth value of shop X is? and the annual worth value of shop Y is? The shop that your friend has to select on the basis of the annual worth analysis is? Your friend is considering a new exhaust system for his Lamborghini Diablo. The estimates from the two shops are shown in the following table. Besides installation, shop Y includes a full replacement warranty for 4 years in the quote. Since money does not appear to be a problem for your friend, and he asked you about the economics of the two quotes, which should he choose based on annual worth values and an interest rate of 12% per year? Shop Installed cost, S Total AOC, S/year Salvage value, $ Life, years X -2,500 -1,200 250 2 Y -2,900 -900 800 4 The annual worth value of shop X is? and the annual worth value of shop Y is? The shop that your friend has to select on the basis of the annual worth analysis is?
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Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
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