A company is considering expanding their production capabilities with a new machine that costs $53,000 and has a projected lifespan of 9 years. They estimate the increased production will provide a constant $6,000 per year of additional income. Money can earn 0.7% per year, compounded continuously. Should the company buy the machine? No, the present value of the machine is less than the cost by o $ 5643 o 666 over the life of the machine

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Why is the answer 666 and not 5643? :( tysm in advance

A company is considering expanding their production capabilities with a new machine that costs $53,000 and has a
projected lifespan of 9 years. They estimate the increased production will provide a constant $6,000 per year of
additional income. Money can earn 0.7% per year, compounded continuously. Should the company buy the machine?
No, the present value of the machine is less than the cost by
o $ 5643
o 666
over the life of the machine
Transcribed Image Text:A company is considering expanding their production capabilities with a new machine that costs $53,000 and has a projected lifespan of 9 years. They estimate the increased production will provide a constant $6,000 per year of additional income. Money can earn 0.7% per year, compounded continuously. Should the company buy the machine? No, the present value of the machine is less than the cost by o $ 5643 o 666 over the life of the machine
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