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 $85,000 with $2,500 salvage value after 16 years. The other can be purchased and installed for $110,000 with $5,000 salvage value after 16 years. Operation and maintenance for each is expected to be $17,000 and $16,500 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. Alternative 1 Show the AW values used to make your decision: Conveyor 1: $ -21182.38 Conveyor 2: $ -23247.39 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10. e Textbook and Media 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. e Textbook and Media Save for Later Attempts: 0 of 3 used Submit 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 installed for $85,000 with $2,500 salvage value after 16 years. The other can be purchased and installed for $110,000 with $5,000 salvage value after 16 years. Operation and maintenance for each is expected to be $17,000 and $16,500 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. Alternative 1 Show the AW values used to make your decision: Conveyor 1: $ -21182.38 Conveyor 2: $ -23247.39 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10. e Textbook and Media 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. e Textbook and Media Save for Later Attempts: 0 of 3 used Submit
