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which asset is the best to recommend for purchase and why? JETCO is considering purchasing new equipment to replace old equipment. The equipment is integral

which asset is the best to recommend for purchase and why? image text in transcribed
JETCO is considering purchasing new equipment to replace old equipment. The equipment is integral to making the product which JETCO manufactures. JETCO is evaluating equipment from three providers. The cost, useful life, and net income from the three options are as follows: Provider 1 Provider 2 Provider 3 $200,000 Initial cost $180,000 $170,000 8 Useful life 7 6 Salvage value 5.000 5,000 Net Income after taxes Year 1 4.000 3.000 2.800 4.000 Year 2 3,000 2 800 Year 3 4,000 3,000 2,800 Year 4 4,000 3,000 2.800 2,800 Year 5 4.000 3,000 2.800 Year 6 4.000 31000 2.800 Year 4.000 3,000 2.0 2.800 JETCO is considering purchasing new equipment to replace old equipment. The equipment is integral to making the product which JETCO manufactures. JETCO is evaluating equipment from three providers. The cost, useful life, and net income from the three options are as follows: Provider 1 Provider 2 Provider 3 $200,000 Initial cost $180,000 $170,000 8 Useful life 7 6 Salvage value 5.000 5,000 Net Income after taxes Year 1 4.000 3.000 2.800 4.000 Year 2 3,000 2 800 Year 3 4,000 3,000 2,800 Year 4 4,000 3,000 2.800 2,800 Year 5 4.000 3,000 2.800 Year 6 4.000 31000 2.800 Year 4.000 3,000 2.0 2.800

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