Question
You are evaluating two different silicon wafer milling machines. Assume a discount rate of 14 percent. Initial investments and operating costs are summarized as follows:
You are evaluating two different silicon wafer milling machines. Assume a discount rate of 14 percent. Initial investments and operating costs are summarized as follows:
| 0 | $270,000 | $475,000 |
| 1 | 71,000 | 48,000 |
| 2 | 71,000 | 48,000 |
| 3 | 71,000 | 48,000 |
| 4 | N/A | 48,000 |
| 5 | N/A | 48,000 |
A. Assume that the machine will not be replaced anymore at the end of its useful life. Which machine should the company buy?
B. Assume that when the machine wears out, it will be replaced again. Which machine should the company buy?
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Ultimate Manual For Newbie Property Investors
Authors: Kimberly K. Benson
1st Edition
979-8866108688
