Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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6. A lamp socket die-cutting company has two alternatives to purchase a new die-cutting machine, where the initial investment (in US dollars) and the projected net income stream for each alternative is shown in the following tables; the number of periods corresponds to the number of years of service life.
If the company's purchasing committee considers a capital cost of 12.50% for internal financing, which machine should be purchased?
Transcribed Image Text:PERIODO
MÁQUINA A
PERIODO
MÁQUINA B
30,000.00
42,000.00
9,500.00
1
8,600.00
2
9,500.00
10,940.00
10,400.00
3
11,200.00
4
11,200.00
4
14,670.00
12,340.00
11,356.00
2.
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