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both required parts please, its one question. Tulsa Company is considering investing in new bottling equipment and has two options; Option A has a lower
both required parts please, its one question.
Tulsa Company is considering investing in new bottling equipment and has two options; Option A has a lower initial cost but would require a significant expenditure to rebuild the machine after four years; Option B has higher maintenance costs but also has a higher salvage value at the end of its useful life. Tulsa's cost of capital is 11 percent. The following estimates of the cash flows were developed by Tulsa's controller: Required: 2. Determine which option Tussa should select? Complete this question by entering your answers in the tabs below. Calculate NPV. (Future Value of \$1, Present Value of $1. Future Value Annuity of 31 , Present Value Annuity of $1. ). Note: Use appropriate factor(s) from the tobles provided. Negative amounts should be indicated by a minus sign. Round your "Prefient Values" to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate NPV. (Future Value of \$1,Present Value of \$1, Future Value Annuity of \$1, Present Value Annuity of $1. ) Note: Use appropriate factor(s) from the tatiles provided. Negative amounts should be indicated by a minus sign. Round your "Present Values" to 2 decimal piaces. Tulsa Company is considering investing in new botting equipment and has two options: Option A has a lower initial cost but would require a significant expenditure to rebuild the machine after four years; Option 8 has higher maintenance costs but also has a higher salvage value at the end of its usefur life. Tulsa's cost of capital is 11 percent. The following estimates of the cash flows were developed by Tulsa's controller: Required: 1. Calculate NPV. (Future Vatue of \$1.Present Volue of \$1. Future Value Annuily of \$1, Present Value Annulfy of \$1.) 2. Determine which option Tuisa should select? Complete this question by entering your answers in the tabs below. Determine which option Tulsa should select Step by Step Solution
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