Question
Engineering building of a company needs a single copy machine. There are three options available (A, B, and C), all have useful life of 5
Engineering building of a company needs a single copy machine. There are three options available (A, B, and C), all have useful life of 5 years and the university must buy one of those. The details are shown below. The first year's maintenance is included in the initial cost as there is a warranty certificate for the first year. The annual interest rate is 13 percent. Annual maintenance cost and resale values of these machines are given in the table.
Calculate NPV for machine A. Give your answer only by using numeric inputs using three digits after the decimal point. Make sure that you use decimal point not a comma.
A | B | C | |
Initial Investment | 5000 | 31000 | 44000 |
Annual Maintenance Cost | 7000 | 13000 | 4000 |
Resale Value | 4000 | 3000 | 3000 |
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