Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yksel Composit is considering to purchase one of two autoclave machine alternatives. Machine 1 has a first cost of $17,688, an operating cost of $390

image text in transcribed
Yksel Composit is considering to purchase one of two autoclave machine alternatives. Machine 1 has a first cost of $17,688, an operating cost of $390 per quarter, and a salvage value of $2,540 after its 4-year life. Machine 2 has a first cost of $ 34,327, an operating cost of $308 per quarter, and a salvage value of $ 11,512 after its 8-year life. Conduct a present worth analysis at an interest rate of 12% per year, compounded quarterly. Which machine is selected and what is the present worth of the selected machine? Select one: a. Machine 2 is selected and present worth is $-40,827 b. Machine 2 is selected and present worth is $-29,365 c. Machine 1 is selected and present worth is $-35,115 d. Machine 1 is selected and present worth is 5-34,093 e. Machine 1 is selected and present worth is $-38,029 f. Machine 2 is selected and present worth is 5-25,779 Yksel Composit is considering to purchase one of two autoclave machine alternatives. Machine 1 has a first cost of $17,688, an operating cost of $390 per quarter, and a salvage value of $2,540 after its 4-year life. Machine 2 has a first cost of $ 34,327, an operating cost of $308 per quarter, and a salvage value of $ 11,512 after its 8-year life. Conduct a present worth analysis at an interest rate of 12% per year, compounded quarterly. Which machine is selected and what is the present worth of the selected machine? Select one: a. Machine 2 is selected and present worth is $-40,827 b. Machine 2 is selected and present worth is $-29,365 c. Machine 1 is selected and present worth is $-35,115 d. Machine 1 is selected and present worth is 5-34,093 e. Machine 1 is selected and present worth is $-38,029 f. Machine 2 is selected and present worth is 5-25,779

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 Finance questions