Question
ABC Inc. must purchase a welding machine. The following is known about the machine and about possible cash flows. p =.40 p =.30 p =.30
ABC Inc. must purchase a welding machine. The following is known about the machine and about possible cash flows.
|
| p=.40 | p=.30 | p=.30 |
| First cost | $20,000 | $20,000 | $20,000 |
| Annual savings | 1,000 | 2,500 | 4,000 |
| Annual costs | 6,000 | 4,000 | 3,000 |
| Actual salvage value | 2,000 | 2,500 | 3,250 |
The machine is expected to have a useful life of 8 years. The company has a MARR of 7%. Determine the NPW of the machine.
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Distressed Debt Analysis Strategies For Speculative Investors
Authors: Stephen Moyer
1st Edition
1932159185, 978-1932159189
