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Please answer solution on an excel sheet (showing formulas) for full credit and please email the excel spreadsheet to gonza95c@gmail.com when completed for full credit
Please answer solution on an excel sheet (showing formulas) for full credit and please email the excel spreadsheet to gonza95c@gmail.com when completed for full credit
Modern Medical Mechanics (M3) has to replace a production machine used to produce a single part. They need an evalaution of two alternative machine models. The forecasted demand for the part is shown below. The choice of machine will not affect this demand. Both of the new machines will last four years and then be replaced with the salvage values at the end of 4 years that is listed below. Depreciation will be 5-year MACRS The two machines have the prices, production cost per part, and salvage value in year 4 as shown below. All setup of the new machines is part of the purchase price. Using a 4-year time horizon, document and make a recommendation of which machine should be adopted from a financial perspective. Assume that there will not be any change in S.G. & A or working capital resulting from this decision. Modern Medical Mechanics (M3) has to replace a production machine used to produce a single part. They need an evalaution of two alternative machine models. The forecasted demand for the part is shown below. The choice of machine will not affect this demand. Both of the new machines will last four years and then be replaced with the salvage values at the end of 4 years that is listed below. Depreciation will be 5-year MACRS The two machines have the prices, production cost per part, and salvage value in year 4 as shown below. All setup of the new machines is part of the purchase price. Using a 4-year time horizon, document and make a recommendation of which machine should be adopted from a financial perspective. Assume that there will not be any change in S.G. & A or working capital resulting from this decisionStep by Step Solution
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