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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

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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 $50,000 with $4,500 salvage value after 16 years. The other can be purchased and installed for $95. with $6,000 salvage value after 16 years. Operation and maintenance for each is expected to $14,500 and $17,500 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. Part a Your answer is correct. 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: \$ Conveyor 2: \$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10. eTextbook and Media Attempts: 1 of 3 used Part b What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two? Cost of the second conveyor: \$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10. eTextbook and Media Attempts: 0 of 3 used 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 $50,000 with $4,500 salvage value after 16 years. The other can be purchased and installed for $95. with $6,000 salvage value after 16 years. Operation and maintenance for each is expected to $14,500 and $17,500 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. Part a Your answer is correct. 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: \$ Conveyor 2: \$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10. eTextbook and Media Attempts: 1 of 3 used Part b What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two? Cost of the second conveyor: \$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10. eTextbook and Media Attempts: 0 of 3 used

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