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If possible I would like to know how to input this into financial calculator to get the answer. If not then formula is okay. Thank
If possible I would like to know how to input this into financial calculator to get the answer. If not then formula is okay. Thank you in advance.
Esquire Company needs to acqule a molding machine to be-used in its manufacturing process. Two types of machines thot would be appropriate are presenty on the market. Tho company has determined the following: (FV of 51. PV of S1. FVA of 51, PVA of 51. EVAD of St and PVAD of 5I) (Use appropriate factoris) from the tables provided.) Machine A could be purchased for $63,000, it will last to years with annuol maintenance costs of $2,000 per year, After to years the machine can be sold for $6,615 Machine B could be purchased for $52,500. It asso will last 10 years and will require maintenance costs of $8,000 in year three, $10,000 in year six, and $12,000 in year eight. Afer to years, the machine will have no salvage value? Required: Assume an interest rate of 8% propedy reflects the time value of money in this s quation and thot maintenance costs ore paid at the end of each yeac ignore income tax considerations. Calculate the present value of Machine A 8 Machine B. Which machine Esquire should purchose? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount) Step by Step Solution
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