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Investments Differe B(1) pat * Week 9(1).pdf X ABUS 341 Assignment_8_Sp21 x box/PC/Documents/ABUS%20465-01/Investments DifferentEconomicLives Fall20.pdf - + 9 ID Page view A Read aloud To
Investments Differe B(1) pat * Week 9(1).pdf X ABUS 341 Assignment_8_Sp21 x box/PC/Documents/ABUS%20465-01/Investments DifferentEconomicLives Fall20.pdf - + 9 ID Page view A Read aloud To Add text Draw Name ABUS 465: Agricultural Finance Comparing Investments with Different Economic Lives Table 1 shows two alternative investment options for machines that perform the same task (could be used trucks). Assume the investor uses a discount rate of 8%. Table 1: Alternative Machine Investments Original Purchase Price Projected Annual Costs Salvage Value Projected Economic Life Machine X $10,000 $3,200 $500 4 years Machine Y $12,000 $3,500 $750 6 years 1. What is the Total Net Return (Total Cost in this case) of each machine over its lifetime? Total Cost Machine X: Total Cost Machine Y: By this measure, which machine would be preferred
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