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could you please solve these questions and show me how can i do in excel formula B C D E G Q R M P
could you please solve these questions and show me how can i do in excel formula
B C D E G Q R M P 1 Problem 1: 2 3 The plant manager at a company would like to perform an analysis for a new $250,000 machine. She estimates benefits of $20,000 in the first year, and benefits are increasing by 10% per year. 4 5 al What is the payback period for the machine? 6 b) Suppose that the machine life is 15 years and machine has a salvage value of 20% of the initial cost at the end of its useful life. If the MARR of the company is 11 % per year, is this investment acceptable? Why? 7 8 Problem 2 (Exercise 6A is modified 9 10 A company would like to purchase a machine for $375,000 with a life of 10 years. They estimate the salvage value to be 6% of the initial machine cost. Other operating costs are estimated to be $32,500 per year. 11 The interest rate the company uses to justify their investments, namely the MARR is 18% per year compounded yearly. 12 a) What is the capital recovery cost? 13 b) What is the minimum amount of annual revenue (5 per year?) that makes this investment an attractive option for the company Step by Step Solution
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