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What is the present value of the profit for option 1? What is the NPV of option 1? What is the NPV of option 2?
What is the present value of the profit for option 1?
What is the NPV of option 1?
What is the NPV of option 2?
Use this information to answer problems 22-26. You are looking to purchase a skid steer and have narrowed down to two options. Option 1: Purchase Price $75,000.00 Salvage Value $10,000.00 Hourly Revenue $75.00 Hourly Operation Costs $25.00 Hourly Operator Costs $30.00 Billable Hours/Year 1,500.00 Option 2: Purchase Price $45,000.00 Salvage Value $5,000.00 Hourly Revenue $75.00 Hourly Operation Costs $30.00 Hourly Operator Costs $30.00 Billable Hours/Year 1,500.00 MARR is 20% and the useful life of each of the skid steers is 3 yearsStep by Step Solution
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