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Question 6 (20 pts): A mine is to purchase a piece of large new mining equipment. It has a working life of four years and

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Question 6 (20 pts): A mine is to purchase a piece of large new mining equipment. It has a working life of four years and a purchasing price of $200K. The annual operating and maintenance costs are $8K,$9K,$10K, and $11K for the four years of ownership. It generates an annual income of $80K. The machine can be sold for a salvage value of $50K at the end of the fourth year. These cash flows are listed in the following table. The company expects a minimum attractive rate of return (MARR) of 12% for any successful project. Determine the following economic measures for the entire project and comment on whether they meet the investment criteria for that measure. i. Net Present Value (NPV): ii. Net Annual Value (NAV): iii. Maximum Capital Exposure (MCE): iv. Payback Period (PP): V. Present Value Ratio (PVR): vi. Benefit Cost Ratio (BCR)

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