Compare the alternatives below using present worth analysis at MARR 10% per year and a 3-year study period. FIRST COST, $ ANNUAL COST $ Per Year SALVAGE/MARKET VALUE, $ LIFE, Years MACHINE A 20,000 9000 4000 3 MACHINE B 30,000 7000 6000 after 6 Years 10,000 after 3 years 6

Compare the alternatives below using present worth analysis at MARR 10% per year and a 3-year study period. FIRST COST, $ ANNUAL COST $ Per Year SALVAGE/MARKET VALUE, $ LIFE, Years MACHINE A 20,000 9000 4000 3 MACHINE B 30,000 7000 6000 after 6 Years 10,000 after 3 years 6

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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Question

Draw the cash flow diagrams for both alternatives.

Compare the alternatives below using present worth
analysis at MARR 10% per year and a 3-year study period.
FIRST COST, $
ANNUAL COST $ Per
Year
SALVAGE/MARKET
VALUE, $
LIFE, Years
MACHINE A
20,000
9000
4000
3
MACHINE B
30,000
7000
6000 after 6 Years
10,000 after 3 years
6

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