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HM Murdock Engineering Corp. is considering a potential investment into a new assembly line. The new assembly line is expected to produce at lower electricity
HM Murdock Engineering Corp. is considering a potential investment into a new assembly line. The new assembly line is expected to produce at lower electricity and wage costs compared to the old one. However, the company expects additional annual production costs of the new assembly line, mainly consisting of maintenance and repairs expenses.
HM Murdock has two potential suppliers for the assembly line: Supplier D. Hecker (DH) offers the assembly line at an unnegotiable price of 37 000. The competitor M. Gadiel (MG) offers a comparable assembly line for 44 000. The expected savings and additional costs differ between these two offers. You find all the information in the provided excel file.
Both offered assembly lines will last for 20 years, at which point they will need to be replaced and will have no salvage value. The discount rate is 7%.
Download the provided excel file containing the given data and solve the tasks below. You must enter the results here in the quiz!
Please enter your results with two digits after the decimal break. Depending on your location, this break is either "," or ".". Do not just cut off the remaining decimals, but apply commercial rounding (as excel does)!
Do not use a thousands separator.
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