mprjug6
mprjug6
28.04.2021 • 
Business

A Company must purchase a machine that will be used over the next 8 years. The purchase price is $10,000 and the salvage value after 8 years is $1000. The annual insurance is 2% of the purchase price, the electricity cost is $300 per year, and maintenance and replacement parts cost $100 per year. The effective annual interest rate for economic analysis is 6%. Neglect taxes. What is the present worth of the machine if its return is $3000 per year for 8 years

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