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I need help with this question please Competing Investment A. A Caterpillar salesperson comes to your office and describes a new front end loader that

image text in transcribedI need help with this question please
Competing Investment A. A Caterpillar salesperson comes to your office and describes a new front end loader that they say will save you money. According to the literature it will cost $152,000 and has an effective service life of 12 years at which time it has a typical salvage (resale) value of $65,000. Your research indicates that this literature is indeed accurate. You review your productivity data and estimate that this equipment will save you 2,000 per month. The machine will, however, require a fixed monthly maintenance cost of $600. Your alternative investment would earn 4 percent for 5 years and 6 percent for the following 7 years (compounded yearly). Would the equipment be a good purchase or should you invest in the alternative account? B. You have the option of purchasing a new fleet of rollers for $155,000 each. The roller increases your productivity enough to earn $1,900 per month. Your research indicates that the maintenance costs of the new rollers would be $750 per month, which increases by $4 per month. After 10 years (the usable life of the new roller) the equipment is worth $60,000. If the competing investment is 6% APR compounded monthly, would these rollers be a good purchase

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