Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Two flash vaporizer machines are considered for the upgrade of biodiesel production. An engineer is asked to perform analyses to select the best machine. He

image text in transcribed

image text in transcribed

Two flash vaporizer machines are considered for the upgrade of biodiesel production. An engineer is asked to perform analyses to select the best machine. He prepares the following information for the evaluation Machine X has a useful life of years and machine Y has a useful life of 11 years. Machine Y First costs $29,000 $32.000 Net annual revenue $10.500 $12.000 Market value at the end of the useful life $6900 $6000 8 11 Lite, years Please calculate your answer to the nearesr dollar. Format 0000 No commas Note you may have to use Excel to calculate the discount factor if no textbook table value exists. (Use 4 decimal places) a) The PW of the CR(8) for Machine Y is? $ b) The PW of the MV(8) for Machine Y is? s] C) The imputed market value, IMV of Machine Y at the end of year 8 is? $0 d) The AW of Machine X is? $ e) The AW of Machine Yis? $ Which machine should be selected using an interest rate of 13% per year and a study period of 8 years. A. B. Machine Y because PW(Y) > PW (X) C. Machine X because AW(x) AW(Y)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions