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x=12345 A company is purchasing a machine that costs $40000. The useful life of the machine is 12 years. The machine has a salvage value
x=12345
A company is purchasing a machine that costs $40000. The useful life of the machine is 12 years. The machine has a salvage value of $X. The annual revenue of the machine is $15000 while maintenance costs are estimated to be $7000 every 3 years. a- Draw the cash flow diagram representing the above situation from the companys point of view. b- Assuming a MARR of 12%, what is the current value of the annual net revenue?
Please show the numbers used in each formula. Thank you.
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