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How do you get this two numbers? I can not get them, it's so large Sheridan, a large manufacturing company, currently uses a large printing
How do you get this two numbers? I can not get them, it's so large
Sheridan, a large manufacturing company, currently uses a large printing press in its operations and is considering two replacements: the PDX341 and PDW581. The PDX costs $501,000 and has annual maintenance costs of $10,100 for the first 5 years and $15,100 for the next 10 years. After 15 years, the PDX will be scrapped (salvage value is zero). In contrast, the PDW can be acquired for $125,250 and requires maintenance of $30,200 a year for its 10 -year life. The salvage value of the PDW is expected to be zero in 10 years. Assuming that Sheridan must replace its current printing press (it has stopped functioning), has a(n) 9 percent cost of capital, and all cash flows are after tax, which replacement press is the most appropriate? (Round answers to 2 decimai places, eg. 125.25.) Chain Replication Approach: NPV of PDX 341 NPV of PDW581 We would prefer Equivalent Annual NPV Approach Step by Step Solution
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