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Do not use excel only tabels or factor formula Two stamping machines are under consideration for purchase by a metal recycling company. The manual model
Do not use excel only tabels or factor formula Two stamping machines are under consideration for purchase by a metal recycling company. The manual model will cost $25,000 to buy with an eight-year life and a $5,000 salvage value. Its annual operating costs will be $16,000. A computer-controlled model will cost $95,000 to buy and it will have a twelve-year life if upgraded at the end of year six for $15,000. Its terminal salvage value will be $23,000, with annual operating costs of $7, 500 for labor and $2, 500 for maintenance. The company's minimum attractive rate of return is 18%. a. Draw the cash flow diagrams for both models b. What is the annual worth of the computer-controlled machine? c. What is the annual worth of the manual model? d. Which machine would be selected based on its annual worth
Do not use excel only tabels or factor formula
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