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Crane Manufacturing is considering the purchase of new computerized equipment. The machine costs $94500 and would generate $27720 in annual cost savings over its 5-year
Crane Manufacturing is considering the purchase of new computerized equipment. The machine costs $94500 and would generate $27720 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $6300 salvage value. Cranes required rate of return is 16%. Click here to view the factor table. Using the present value tables, the machines net present value is (round to the nearest dollar)
$90764.
$-3736.
$-737.
$668.
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