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please help to solve below question and provide explained details thanks! PARC Co. has asked you to recommend a new nutcracker machine. After months of
please help to solve below question and provide explained details thanks!
PARC Co. has asked you to recommend a new nutcracker machine. After months of hard research, you have collected the following data: Discussions with the accounting department reveal that a loan must be secured to purchase any machine. The loan data are as follows: The loan payments will be made annually with 12% interest. PARC co. assumes MARR = 15% Using the Net Present Worth (NPW) analysis, answer the following questions: The analysis period if you are going to use NPW is close to: a) 24 years b) 21 years c) 12 years d) 18 years The interest rate that you are going to use in the calculation is: a) 12% b) 15% c) 30% d) 13% The NPW for KRAX type, using only 6 years cash flow, is close to: a) $40, 500 b) $15, 500 c) $11,000 d) $10, 110 The NPW for SPLIT-NUT type, using only 9 years cash flow, is close to: a) $10, 500 b) $12, 500 c) $11, 200 d) $10, 100 The NPW for KRAX type, in the analysis period, is close to: a) $10, 510 b) $65, 300 c) $61, 900 d) $14, 250 Recommend which machine to purchase: a) SPLIT-NUT b) KRAX c) Both d) NoneStep by Step Solution
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