Question
A shoe factory can buy a sewing machine with a down payment of $ 455,000, which is equivalent to 30% of the cash value and
A shoe factory can buy a sewing machine with a down payment of $ 455,000, which is equivalent to 30% of the cash value and the rest financed in 30 months with equal monthly installments and an interest of 3.2% per month on the balance; the monthly maintenance cost of the machines is $ 18,000, it requires a repair after four years for the value of $ 160,000, it has a useful life of six years and a market value of $ 680,000; in addition, a monthly income of $ 80,000 is obtained. There is also the possibility of taking a machine on lease for the same period of six years and in which leases must be paid as follows: $ 32,000 per month the first year and then increase by $ 4,000 each year; the monthly income will be equal to that of the first machine. Determine the best alternative for a discount rate of 30% nominal monthly.
If you can do it in excel it would be great and I'll be glad to leave my like
Topic related to the financial evaluation of the subject of economic engineering.
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