excelo inc. just purchased a new machine for $85000. the machine will generate savings of $25000 per year for the next 5 years. each year the machine will run for 4000 hours. the salvage value at the end of 5 years will be $34000. assume an interest rate of 10% what is the capital recovery annual cost? what is the equivalent net savings per machine running hour for Excelo?
excelo inc. just purchased a new machine for $85000. the machine will generate savings of $25000 per year for the next 5 years. each year the machine will run for 4000 hours. the salvage value at the end of 5 years will be $34000. assume an interest rate of 10% what is the capital recovery annual cost? what is the equivalent net savings per machine running hour for Excelo?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13EA: Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will...
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