Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

S8.8 - Determine whether changing the annual revenue will change the feasibility of an alternative using the PW analysis Hemisphere Electric may purchase equipment to

image text in transcribed

S8.8 - Determine whether changing the annual revenue will change the feasibility of an alternative using the PW analysis Hemisphere Electric may purchase equipment to manufacture a new line of wireless devices for home appliance control. The first cost of the equipment will be $98,000, and the life of the equipment is estimated to be 6 years with a salvage value of $10,000. Different people in marketing have provided revenue estimates that the devices will generate. The estimates range from a low of $10,000 to a high of $20,000, with an average of $16,000 per year. If the MARR is 11% per year, use PW to determine if these different estimates will change the decision to purchase the equipment. The present worth of low estimate range is $ The present worth of average estimate range is $ The present worth of high estimate range is \$ The $10,000 revenue estimate the purchase. The $16,000 revenue estimate the purchase. The $20,000 revenue estimate the purchase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Complete Guide To Property Finance

Authors: Richard W J Brown

1st Edition

1739832027, 978-1739832025

More Books

Students also viewed these Finance questions

Question

7. Provide appropriate remediation when students fail.

Answered: 1 week ago

Question

explain what is meant by experiential learning

Answered: 1 week ago

Question

identify the main ways in which you learn

Answered: 1 week ago