1. A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans to use the machine for 13 years and then will sell the machine for scrap, receiving $20,000. The company's MARR is 12%. Should the machine be purchased? Use conversion factor notation and show cash flow diagram.

1. A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans to use the machine for 13 years and then will sell the machine for scrap, receiving $20,000. The company's MARR is 12%. Should the machine be purchased? Use conversion factor notation and show cash flow diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

It’s time to get a new laptop that is $2500. If you finance it, you will be charged 8% annual interest and it will take you two years to pay it off, paying each month. (A)How much will you pay each month for this laptop? (B)What are your total acquisition costs of financing the laptop?
A bank account pays 3% interest with monthly compounding. A series of deposits started with a deposit of $5000 on January 1, 2007. Deposits in the series were to occur each 6 months. Each deposit in the series is for $150 less than the one before it. The last deposit in the series will be due on July 1, 2021. What is the future worth of the account on July 1, 2024, if the balance was zero before the first deposit and no withdrawals are made?
You owe P30,000 due at the end of 3 years without interest. After 2 years, you want to pay the loan, how much should your creditor be willing to accept at the least? Money is worth 8%. 5.
provide cash flow diagram. From the Question, what is the equivalent uniform annual cost over the entire-50 year period?
Don't use ec
#3
Explain it early but not in excel works. Typed or handwriting use onlys
Draw a cash flow diagram for the following end-of-period cash flows.
For the following cash flows, using Excel, compute: a) the present worth. b) the equivalent uniform annual worth c) draw a cash flow diagram (chart) of the annuities. 200 220 i 15% 242 266.20
Typed plz and asap thanks
# 7 Use Excel - Be organized. Use Excel formulas/functions.  A new high efficiency motor is being considered for a large compressor.  It will cost $22,000 but it will save $8250 per year in O&M.  The useful life of the motor is 8 years. The company has a 3-year discounted payback period, and a MARR of 15%. (a) Should the motor be bought?
10