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Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 13 years and no salvage value.
Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 13 years and no salvage value. Polisher 1 requires an initial investment of $23,000 and provides annual benefits of $4,360. Polisher 2 requires an initial investment of $11,000 and provides annual benefits of $1,820. Polisher 3 requires an initial investment of $16,800 and provides annual benefits of $3,680. MARR is 12%/year.
What is the future worth of Polisher 1? $
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