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Interstate Mirufactaring is cons dering ether overhaulng an old mostine or replacing towin a rew mactine Ifomation about the Nove: Use oppropriete factoc | s
Interstate Mirufactaring is cons dering ether overhaulng an old mostine or replacing towin a rew mactine Ifomation about the Nove: Use oppropriete factocs from the tables pravided.
Abensative Keep the old mach net cash fows in each of the next fre yeers Aftet five yeas. It can be sold for a $ salvage value
AhembTke : Sell the old machre for $ and buy a new one. The rew machine reqires an irital imestment of $ and sen be sold for a $ saluage velue in free years. It would yedd cost savengs and righer saks, resulang in rat cash fows of $ in each of the next five years.
Fiequired:
Determine the net prevent value of atemotive
Debermene the net present value of atemative
Which allecnathe should menogement select based on net present value?
Complete this question by enterimy yeur answers is the tabos telow.
tableRequired Arquints?,Required
Decermine the res presert value of aitemative ntele dotar
tabletablehet CanhFlowstableTTaere Valu:Factors at tableFreart Walye ofCah FlaweYear Sahape salue Gear ETeldsaHati.initalloweatrent
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