Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22 points I Prenous Answers Notes Ask Your Te A company is considering two investment alternatives Alternative A is a new machine that costs $50,000

image text in transcribed
22 points I Prenous Answers Notes Ask Your Te A company is considering two investment alternatives Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $7096 per year Alternative 8 is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $10377 per year. | Find the present worth of each alternative if the company as a MARR of 11.0%/year. Alternative A $ -8210 Alternative B $ -5082 8 (On the test you must be able to tell me that you would select the one with the higher present value. My Notes Ask Your Teach A company is considering a new piece of equipment that will save them $1334 per year. The machine costs $8790. After 8 years in service the machine will have to be replaced. It has no salvage value at the end of eight years. Given a MARR of 11.1% per year, what is the future worth of the machine? $ 8804 61 I If inflation is 3% per year, what is the Future worth in real dollars (adjusted for inflation)? $ 5082 83 02 points 1 Previous Answers My Notes Ask Your Teache Hannah is saving for retirement in 10 years. She procrastinated in her savings and is starting from scratch. She would like to save $1715000. If she starts by depositing S53300 each year into an account paying iiwyear cornpounded annually, What gradient would be required to meet her goal? s1.635 If Hannah expects inflation to be 4% over the next 10 years, and she wants her retirement amount to be $1715000 in real (inflation adjusted) dollars how much must her gradient be? 2 0278 02 points My Notes Ask Your A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It wil save the 2/14/2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Social Finance Shadow Banking During The Global Financial Crisis

Authors: Neil Shenai

1st Edition

3030082318, 978-3030082314

More Books

Students also viewed these Finance questions