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must use excel. show work/ equations A new machine is purchased to produce Nike's flagship product, Air Cartwrights, for $235,000. The annual revenue from this
must use excel. show work/equations
A new machine is purchased to produce Nike's flagship product, Air Cartwrights, for $235,000. The annual revenue from this machine is calculated to be $54,580, rising 3% every year for 8 years. Expect the maintenance and operation costs to be $3,000 the first year, rising 1.5% every year, with a salvage value of $22,000 at the end of the project life. Nike expects a 20% return on this project (a) What is the rate of return for this machine? (b) Will Nike move forward with this project? What are other metrics that can be used to also make this comparison? Oa) 22% b)Yes Oa) 18%, b) Yes a) 18% b)No a) 12.5%, b) Yes Ob) 22%, b)NOStep by Step Solution
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