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PLEASE READ!!! NEED A FULL NUMERCAL SOLUTON STEP BY STEP WTH THE ANSWER The costs and revenues of 2 alternatives for a machine are given
PLEASE READ!!! NEED A FULL NUMERCAL SOLUTON STEP BY STEP WTH THE ANSWER
The costs and revenues of 2 alternatives for a machine are given below. Determine which alternative is economically viable using the present value method when 20.56% annual discount rate compounded 4- month maturity. (please make numerical operation) 1. machine 300 000 2. machine 300 000 %20 15000 %25 parameters Initial investment cost Salvage cost (based on initial investment cost) Annual operating cost for the first year Annual interest rate of operating cost First year income Annual decrease rate of amount of income Economic life 15000 %18 200 000 %22 300 000 %1.5 16 years 5000 10 years Show transcribed image text
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