PARC Co. has asked you to recommend a new nutcracker machine. After months of hard research, you have collected the following data: Data Life, Years First Cost (FC) Benefit, Yearly (AB) Benefit Gradient (ABG) O&M cost Gradient (M&OG) O&M Cost uniform annual Salvage Value O 21 years O 12 years O 18 years KRAX 6 O 24 years $202,000 73,000 1,200 600 18,000 42,000 SPLIT-NUT PARC Co. assumes MARR = 15%. Using the Net Present Worth (NPW) analysis: The analysis period if you are going to use NPW is close to: 9 $285,000 88,000 1,300 1,100 34,000 48,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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PARC Co. has asked you to recommend a new nutcracker machine. After months of hard research, you have collected
the following data:
Data
Life, Years
First Cost (FC)
Benefit, Yearly (AB)
Benefit Gradient (ABG)
O&M cost Gradient (M&OG)
O&M Cost uniform annual
Salvage Value
O 21 years
O 12 years
O 18 years
KRAX
6
O 24 years
$202,000
73,000
1,200
600
18,000
42,000
SPLIT-NUT
9
$285,000
88,000
PARC Co. assumes MARR = 15%. Using the Net Present Worth (NPW) analysis:
The analysis period if you are going to use NPW is close to:
1,300
1,100
34,000
48,000
Transcribed Image Text:PARC Co. has asked you to recommend a new nutcracker machine. After months of hard research, you have collected the following data: Data Life, Years First Cost (FC) Benefit, Yearly (AB) Benefit Gradient (ABG) O&M cost Gradient (M&OG) O&M Cost uniform annual Salvage Value O 21 years O 12 years O 18 years KRAX 6 O 24 years $202,000 73,000 1,200 600 18,000 42,000 SPLIT-NUT 9 $285,000 88,000 PARC Co. assumes MARR = 15%. Using the Net Present Worth (NPW) analysis: The analysis period if you are going to use NPW is close to: 1,300 1,100 34,000 48,000
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