Geo-Star Manufacturing Company is considering a new investment in a punch-press machine that will cost $96,000 and has an annual maintenance cost of $10,800. There is also an additional overhauling cost of $23,000for the equipment once every four years. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at an interest rate of 15%?Click the icon to view the interest factors for discrete compounding when i=15% per year.The capitalized equivalent cost of this investment is $ thousand. (Round to the nearest whole number.)More InfoSingle PaymentCompoundAmountFactorEqual Payment SeriesSinking PresentFundCompoundAmountFactor(F/A, i, N)CapitalRecoveryWorthFactorFactorFactorN(F/P, i, N)(A/F, i, N)(P/A, i, N)(A/P, i, N)11.15001.00001.00000.86961.150021.32252.15000.46511.62570.615131.52093.47250.28802.28320.438041.74904.99340.20032.85500.350352.01146.74240.14833.35220.298362.31318.75370.11423.78450.264272.680011.06680.09044.16040.240483.059013.72680.07294.48730.222993.517916.78580.05964.77160.2098104.045620.30370.04935.01880.1993PresentWorthFactor(P/F, i, N)0.86980.75610.65750.57180.49720.43230.37590.32690.28430.2472

Geo-Star Manufacturing Company is considering a new investment in a punch-press machine that will cost $98,000 and has an annual maintenance cost of $10,800. There is also an additional overhauling cost of $23,000 for the equipment once every four years. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at an interest rate of 15%? Click the icon to view the interest factors for discrete compounding when /=15% per year.

Geo-Star Manufacturing Company is considering a new investment in a punch-press machine that will cost $98,000 and has an annual maintenance cost of $10,800. There is also an additional overhauling cost of $23,000 for the equipment once every four years. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at an interest rate of 15%? Click the icon to view the interest factors for discrete compounding when /=15% per year.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section10.A: Mutually Exclusive Investments Having Unequal Lives

Problem 2P

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