question archive A chemical company is considering buying a new production equipment

A chemical company is considering buying a new production equipment

Subject:EconomicsPrice: Bought3

A chemical company is considering buying a new production equipment. The following models are identified as viable candidates from the technical perspectives. The company's MARR is 8%. The estimated cash flows for each alternative are below. Suppose the cotermination assumption is made. Please round all your answers to the nearest integer. Machine A: - Capital Investment: $34,000 - Useful Life: 8 years - Market Value at the End of Life: $6,000 - Annual Revenues: $153,000 - Annual Expenses: $119,000 Machine B: - Capital Investment: $44,000 - Useful Life: 15 years - Market Value at the End of Life: $6,000 - Annual Revenues: $198,000 - Annual Expenses: $154,000 Machine C: - Capital Investment: $55,000 - Useful Life: 7 years - Market Value at the End of Life: $2,000 - Annual Revenues: $247,500 - Annual Expenses: $192,500

a) What is the FW of Machine A?

b) What is the FW of Machine B?

c) What is the FW of Machine C?

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