9-15. A small high-speed commercial centrifuge has the following net cash flows and abandonment values overin following net cash flows and abandonment values useful life (see Table P9-15, p. 459). The firm's MARR is 10% per year. Determine optimal time for the centrifuge to be abandoned if is current MV is $7,500 and it won't be used for more then five years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 End of Year 3. 4. 5. Annual revenues less expenses Abandonment value of machine" $6,200 S5,200 $4,000 $2,200 $2,000 $2,000 $2,000 $2,000 $2,000 0. a Estimated MV.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
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9-15. A small high-speed commercial centrifuge has the
following net cash flows and abandonment values overin
9-15. A small high-speed commercial centrifuoe k
useful life (see Table P9-15, p. 459).
The firm's MARR is 10% per year. Determine
optimal time for the centrifuge to be abandoned if in
current MV is $7,500 and it won't be used for more then
five years. (9.8)
TABLE P9-15 Cash Flows and Abandonment Values for
Problem 9-15
End of Year
3.
4.
5.
Annual revenues less expenses
Abandonment value of machine" $6,200 $5,200 $4,000 $2,200
$2,000 $2,000 $2,000 $2,000 $2,000
0.
a Estimated MV.
Transcribed Image Text:9-15. A small high-speed commercial centrifuge has the following net cash flows and abandonment values overin 9-15. A small high-speed commercial centrifuoe k useful life (see Table P9-15, p. 459). The firm's MARR is 10% per year. Determine optimal time for the centrifuge to be abandoned if in current MV is $7,500 and it won't be used for more then five years. (9.8) TABLE P9-15 Cash Flows and Abandonment Values for Problem 9-15 End of Year 3. 4. 5. Annual revenues less expenses Abandonment value of machine" $6,200 $5,200 $4,000 $2,200 $2,000 $2,000 $2,000 $2,000 $2,000 0. a Estimated MV.
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