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Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of $31,860 and annual expenses of $9,158 that will increase
Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of $31,860 and annual expenses of $9,158 that will increase by $534 per year. It will require an overhaul at the end of year 5 at a cost of $6,178. The Flownator will save $19,185 per year in labor costs. The Flownator has a salvage value of $8,129 and a lifespan of 10 years. The YogGoo300 has a first cost of $21,200 and annual expenses of $3,741 that will increase by 9% per year. The YogGoo300 will save Flo's $11,747 per year in labor costs. The YogGoo300 has a lifespan of 6 years. What must the salvage value of the YogGoo30 be to make it equally desirable to the Flownator? Use a MARR of 9% to make your calculation. Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point ("''). Frank signed up with a new movie service. It costs $716 per year, with a one-time set-up fee of $221 due today. The movie service requires a 5-year contract. If movies typically cost $9.95 per movie, what is the minimum number of movies Frank would need to see in a year to make the service worthwhile? Use an interest rate of 4% to make the calculation. Enter your answer as follows: 12345 Round your answer. Do not use any commas (","), or a decimal point (":") Note: Frank makes the payments at the end of the year. Frank makes the first payment at the end of year 1 and the last payment at the end of year 5
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