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Please show work Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling
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Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling "time and use" slots to various researchers around the world. Four possible telescopes have been identified in addition to the possibility of not buying a telescope if none are financially attractive. The table below details the characteristics of each telescope. An external rate of return analysis is to be performed using a MARR of 25%. T1 T2 T3 T4 Useful Life 10 years 10 years 10 years 10 years First Cost $600,000 $800,000 $470,000 $540,000 Salvage Value $70,000 $130,000 $65,000 $200,000 Annual Revenue $400,000 $600,000 $260,000 $320,000 Annual Expenses $130,000 $270,000 $70,000 $120.000 Which telescope (if any) is most financially attractive? Show the comparisons and external rates of return used to reach this decision: Comparison 1: ERR 1: % Comparison 2: ERR 2: % Comparison 3 + ERR 3: % Comparison 4: + ERR 4: Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2Step by Step Solution
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