I need answer within 10 minutes please with my best wishes A firm has received estimates for itsrecent announcement for theacquisition of a sophisticated grindingmachine. The data are as per theestimate in today's value as follows. Findthe best machine based on the presentworth method. Interest rate is 15%,compounded annually.Cost typeOptions AOption BCapital cost $Operation life (Y)Salvage value $Annual operation and maintenance 300,000 x (1+year no x 0.05)cost $1,500,0002,000,00077300,000250,000 x (1+year no x 0.05)200,000AВBoth optionsOther:

Given information : Year Cash flow A Cash flow B 0 1500000 2000000 1 315000 262500 2 330000…

Answered: nnas recelved estimat t announcement…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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