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B) By how much could the annual labor savings of the equipment described in the illustration above decrease for the project to be minimally acceptable?

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B) By how much could the annual labor savings of the equipment described in the illustration above decrease for the project to be minimally acceptable? 6.66 Points none at all, it is below the acceptable point already just over 18% of the present $30.000 per year labor savings just over 15% of the present $30,000 per year labor savings none at all, it is just barely acceptable now 9) Sensitivity analysis allows a manager to answer"what-it questions about changes in 6,66 Points useful life cash flows risk B and C A. B. and C 10) Turner Corporation is considering the replacement of some equipment by a more efficient technologically advanced model. The new equipment costs $100,000, but the vendor has agreed to provide a trade-in on the existing equipment of $25,000. The present equipment has a remaining useful life of four years and the new equipment would be retired at the end of its fourth year of service. Given the expected level of future operations, the existing generating equipment's operating costs are predicted to run $40,000 per year. The new equipment is expected to result in operating costs of $20,000 per year. The current equipment would have a $10,000 salvage value at the end of its useful life, whereas the proposed equipment's salvage value is estimated to be $20,000 Turner's minimum desired rate of return on investments is 10%. In using the total project approach, the NPV of replacing the existing equipment is 6.66 Points ($151,665) ($163,398) ($158,345) ($149.788) B) By how much could the annual labor savings of the equipment described in the illustration above decrease for the project to be minimally acceptable? 6.66 Points none at all, it is below the acceptable point already just over 18% of the present $30.000 per year labor savings just over 15% of the present $30,000 per year labor savings none at all, it is just barely acceptable now 9) Sensitivity analysis allows a manager to answer"what-it questions about changes in 6,66 Points useful life cash flows risk B and C A. B. and C 10) Turner Corporation is considering the replacement of some equipment by a more efficient technologically advanced model. The new equipment costs $100,000, but the vendor has agreed to provide a trade-in on the existing equipment of $25,000. The present equipment has a remaining useful life of four years and the new equipment would be retired at the end of its fourth year of service. Given the expected level of future operations, the existing generating equipment's operating costs are predicted to run $40,000 per year. The new equipment is expected to result in operating costs of $20,000 per year. The current equipment would have a $10,000 salvage value at the end of its useful life, whereas the proposed equipment's salvage value is estimated to be $20,000 Turner's minimum desired rate of return on investments is 10%. In using the total project approach, the NPV of replacing the existing equipment is 6.66 Points ($151,665) ($163,398) ($158,345) ($149.788)

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