can someone walk me through this? You supervise an aging production line that constantly needs maintenance and new parts. Last month you spent $25,000 replacing a failed controller. . The net installed cost of the new line is $600,000 with a useful life of 6 years. First year of operation will cost $100,000 and will generate annual revenues of $300,000. Each year the operating cost will increasse by $5,000 and revenues will fall $15,000. After 6 years the equipment will have a value of $100,000 in the next re-building of the line. lets break this in to 4 sections. 1)the cash flow diagram 2) net present value of the costs 3) net present value of the costs 4) npw 5) Should the following plan be accepted if the interest rate is 15%

can someone walk me through this? You supervise an aging production line that constantly needs maintenance and new parts. Last month you spent $25,000 replacing a failed controller. . The net installed cost of the new line is $600,000 with a useful life of 6 years. First year of operation will cost $100,000 and will generate annual revenues of $300,000. Each year the operating cost will increasse by $5,000 and revenues will fall $15,000. After 6 years the equipment will have a value of $100,000 in the next re-building of the line. lets break this in to 4 sections. 1)the cash flow diagram 2) net present value of the costs 3) net present value of the costs 4) npw 5) Should the following plan be accepted if the interest rate is 15%

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 41P

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