2 problems

P8bis. A Company has just $45.000 $45.000 $35.000 $35.000 bought a new machine at a cost $25.000 of $105,000 to replace one that $15.000 had a salvage value of $20,000. The projected annual after-tax Annual cash flow savings via improved efficiency, 2 3 5 6 which will exceed the Years (n) investment cost, are as follows: Period Cash Flow (a) Find the simple payback -$105,000 + $20,000 $85,000 period. 15,000 N - 25,000 (b) Find the Discounted Payback 35,000 Period. suppose the company 45,000 requires a rate of return of 45,000 15%. 35,000 P9 Morton and Moore LLC (M-) is trying to decide between two machines which are necessary in their manufacturing facility. Data concerning the two machines are presented below. If M has a minimum attractive rate of return (MARR) of 15%, which machine should be chosen? Machine A Machine B First Cost $45,000 $24,000 Annual Operating Costs 31,000 35,000 Overhaul in Years 2 and 4 6,000 Overhaul in Year 5 12,000 Salvage Value 10,000 8,000 Useful Life 8 years 6 years