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3. A French company is planning to replace the old machine for a new one. The new machine will cost Euro 4 million, the old
3. A French company is planning to replace the old machine for a new one. The new machine will cost Euro 4 million, the old one can not be sold. The new machine will be used for 20 years, then it can be sold for 25% of the purchase price. Each year the company will save Euro 450,000 on the production costs, but the maintenance costs will be higher too: Euro 40,000 per year. The MARR of this company is 9% annual nominal, compounded annually. a) Calculate the discounted Payback period DO IT WITH EXCEL FORMULA
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