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4. The XYZ Corporation is planning to purchase an extruder. The purchase price of the extruder is $350,000. The company plans to make a down

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4. The XYZ Corporation is planning to purchase an extruder. The purchase price of the extruder is $350,000. The company plans to make a down payment of 25% of the first cost of the extruder and to make annual payments on a 7-year, 10% loan for the remainder of the cost of the extruder. ) XYZ believes that the extruder can be sold for $75,000 at the end of its 15-year service life. The new extruder will increase the company's annual income by $90,000. Maintenance and operating costs are expected to be $4,000 during the first year and to increase by $1,200 each year. XYZ uses a before-tax MARR of 12% for its preliminary economic studies. (MARR: minimum acceptable rate of return) 1 (a) (10 points) What is XYZ's annual loan repayment? (b) (10 points) Construct a cash flow diagram of the extruder for XYZ Corporation. (Note: XYZ's loan from bank will be used for extruder purchase. The ($350,000 - down payment) financing and the $350,000 investment for machine purchase both occur at Time 0, which makes the net cash flow at Time 0 only a down payment. However, XYZ has to repay the loan within the next 7 years.)? (c) What is the equivalent uniform annual worth (EUAW)? PLEASE ANSWER PART A,B AND C

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