Technology Innovations is planning to purchase one of two chip insertion machine

Question

Technology Innovations is planning to purchase one of two chip insertion machines. Due to the pace of technological change in this area, it is realistic to assume that these are one-shot investments. The expected cash flows for each machine are shown below. MARR is 6.0%/year. E Series M Series Initial Investment $40,000 $60,000 Estimated Life End of Life Salvage $10,000 Annual Income Annual Expense $10,000 $6,000 $0 21,900 28,500 Click here to access the TVM Factor Table Calculator Your answer is incorrect. Try again. What is the present worth of each machine? E Series: $ 19125 24247 M Series: $

Explanation / Answer

E series Intial Investment cash flow PV factor -40000 Net Income 11900 5.58238 66430.34 Salvage value 10000 0.66506 6650.571 Present Worth 33081 M series Intial Investment -60000 Net Income 22500 4.212364 94778.19 Salvage value 6000 0.747258 4483.549 Present Worth 39262

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.