Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie 15,000 12 years 4,700 1,400 2,250 Creamy 40,000 First Cost Service Life Annual profit Annual operating cost Salvage value A MARR which makes the two alternatives equivalent in term of PW is 12 years 12,000 3,720 5,400
Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie 15,000 12 years 4,700 1,400 2,250 Creamy 40,000 First Cost Service Life Annual profit Annual operating cost Salvage value A MARR which makes the two alternatives equivalent in term of PW is 12 years 12,000 3,720 5,400
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 2.5CE: Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States...
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