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b-What must the cost of the second (more expensive ) conveyor be for there to be no economic advantage between the two? $ A granary

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b-What must the cost of the second (more expensive ) conveyor be for there to be no economic advantage between the two?

$

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 $60,000 with $4,500 salvage value after 16 years. The other can be purchased and installed for $120,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $21,000 and $18,000 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. Parta Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Conveyor 1: $ Conveyor 2: $ 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 $60,000 with $4,500 salvage value after 16 years. The other can be purchased and installed for $120,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $21,000 and $18,000 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. Parta Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Conveyor 1: $ Conveyor 2: $

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