Question
A company wants to open up a new site. They requested bids from three different equipment makers for the necessary equipment. Each machine costs a
A company wants to open up a new site. They requested bids from three different equipment makers for the necessary equipment. Each machine costs a different amount and has a different fixed cost and variable cost of operation. At the new site, the company plans to make 40,000 units in the first month, with the quantity growing by 1% each month. Each unit is sold for $5.00. It has a cost of capital of 4.375%. For each machine, find the NPV and. I've created the outlines of some tables that will be useful in arriving at your answer, but you may wanteed additional computations.
Could you use Excel to solve the problem? Thank you.
Jorge2go wants to open up a new site. They requested bids from three different equipment makers for the necessary equipment Each machine costs a different amount and has a different fixed cost and variable cost of operation At the new site, the company plans to make 40.000 units in the first month with the quantity growing by 1% each month. Each unit is sold for $5.00 Jorge2go has a cost of capital of: 4.375% For each machine, find the NPV and. I've created the outlines of some tables that will be useful in arriving at your answer, but you may wantneed additional computations Unatul lite Salvage value N PY I RR Cost to purchase Fixed cost month Per-unit variable con Machine X $9,060,000 $5.000 $1.10 Machine Y $9,030,000 $6,000 $1.07 Machine Z $9,070,000 $2,000 $1.14 5 years 5 years 5 years Month Cost with X Cost with Y Cost with Z Year Cashflow with X Cashflow with Y Cashflow with Z Quantity 40.000 Purchase date 2020 2021 2022 2023 2024 Jan-2020 Feb-2020 Mar-2020 Apr-2020 May-2020 Jun-2020 Jul-2020 Aug-2020 Sep-2020 Oct-2020 Nov-2020 Dec-2020 Jan-2021 Feb-2021 Mar-2021 Apr-2021 May-2021 Jun-2021 Jul-2021 Aug-2021 Sep-2021 Oct-2021 Nov-2021 Dec-2021 Jan-2022 Feb-2022 Mar-2022 Apr-2022 May-2022 Jun-2022 Jul-2022 Aug-2022 Sep-2022 Oct-2022 Nov-2022 Dec-2022 Jan-2023 Feb-2023 Mar-2023 Apr 2023 May-2023 Jun-2023 Jul-2023 Aug-2023 Sep-2023 Oct-2023 Nov-2023 Dec-2023 Jan-2024 Feb-2024 Mar-2024 Apr-2024 May-2024 Jun-2024 Jul-2024 Aug-2024 Sep-2024 Oct-2024 Nov.2024 Dec-2024Step by Step Solution
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