You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35.000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part A: Choose the correct Cash Flow Diagram for this scenario from the options below. Option A Option B $4,000 $85.000 +$4,000 $85,000 0 A 1 16 1. 2 -15 -S35000 $35,000 $165000 $165,000 Option Option D G$4,000 589,000 $85.000 $85.000 0 0 A A $35,000 1 -S35000 $165,000 $165000 $CANVAS COURSE REFERENCE$/file ref/g14751ca22793a3e949a1220296c560b1/download?download frd=1 O Option B O Option A O Option D Option C You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part B: Choose the correct Function Notation for this scenario. 0 -165,000 = 50,000(P/A, 4.000, 16) 165,000 = 50,000(P/A, i*, 15) + 4,000(P/G, i*, 15) -165,000 = 50,000(P/A, 1*, 16) + 4,000(P/G, i*, 15) O 165.000 = 50,000(P/A, 4,000, 15) You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part C: Provide the ROR for the purchase. Enter your answer in the form 12.34 (for example, 12.34% would be entered as 12.34) You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part D: Fill in the blank for the following statement. In order to choose to invest in this project, the MARR needs to be compared to the calculated ROR. less than equal to O greater than
