Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and

image text in transcribed
A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $75,000 with $3,500 salvage value after 16 years. The other can be purchased and installed for $105,000 with $5.000 salvage value after 16 years. Operation and maintenance for each is expected to be $17.000 and $15.500 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 25%, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Parta Your answer is partially correct. Alternative 1 Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision Conveyor 1: $ 22331.1 Conveyor 2: $ 22963.57 A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $75,000 with $3,500 salvage value after 16 years. The other can be purchased and installed for $105,000 with $5.000 salvage value after 16 years. Operation and maintenance for each is expected to be $17.000 and $15.500 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 25%, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Parta Your answer is partially correct. Alternative 1 Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision Conveyor 1: $ 22331.1 Conveyor 2: $ 22963.57

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

International Financial Management

Authors: Jeff Madura

10th Edition

1439038333, 9781439038338

More Books

Students also viewed these Finance questions