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Show detailed calculations AND the required formulas Question #1 (30 Points): DO Not show excel calculations A construction company is considering investing in an excavator
Show detailed calculations AND the required formulas Question #1 (30 Points): DO Not show excel calculations A construction company is considering investing in an excavator to expand its operations. The company is considering two offers from two different suppliers: CAT336 and PC300. The purchase price of both models are 550,000 EGP and 420,000 EGP, respectively. The salvage value of both models is expected to be 20% of the purchase price. The operating expenses of the CAT336 is expected to be 20,000 EGP in the first year and increasing by 500 EGP each year thereafter. The PC300 is expected to have annual operating expenses of 20,000 EGP. The service life of both models is 10 years. The expected revenues from using both excavators are 100,000 EGP per year. The company would like to make a decision based on the discounted payback period method. Which model do you recommend at a MARR of 8%? Show detailed calculations AND the required formulas Question #1 (30 Points): DO Not show excel calculations A construction company is considering investing in an excavator to expand its operations. The company is considering two offers from two different suppliers: CAT336 and PC300. The purchase price of both models are 550,000 EGP and 420,000 EGP, respectively. The salvage value of both models is expected to be 20% of the purchase price. The operating expenses of the CAT336 is expected to be 20,000 EGP in the first year and increasing by 500 EGP each year thereafter. The PC300 is expected to have annual operating expenses of 20,000 EGP. The service life of both models is 10 years. The expected revenues from using both excavators are 100,000 EGP per year. The company would like to make a decision based on the discounted payback period method. Which model do you recommend at a MARR of 8%
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