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Chapter 06, Supplemental Question 06 Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope

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Chapter 06, Supplemental Question 06 Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling "time and use" slots to various researchers around the world. Four possible telescopes have been identified in addition to the possibility of not buying a telescope if none are financially attractive. The table below details the characteristics of each telescope. An external rate of return analysis is to be performed using a MARR of 25% Useful Life First Cost Salvage Value $70,000 $130,000 $65,000 $200,000 Annual Revnue $400,000 $600,000 260,000 $320,000 Annual Expenses $130,000 $270,000 70,000 $120,000 10 years 10 years 10 years 10 years $600,000 $800,000 $470,000 $540,000 Which telescope (if an) is most financially attractive? Show the comparisons and external rates of return used to reach this decision: Comparison 1: Comparison 2 Comparison 3: Comparison 4: carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is 0.2. ERR 1 | ERR 2: 1 ERR 3 ERR 4

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