Question 5 A machine that have the following cost is under consideration for a new manufacturing process. The interest rate is 6% compounded s First cost = $70,000 Semiannual operating cost = 6,000 Semiannual income = 18,000 Salvage value = 9,000 Life in years = 5 years O a. PW = $29,059 Ob. PW = $39,059 OC. PW = -$39,059 O d. PW = $19,059
Question 5 A machine that have the following cost is under consideration for a new manufacturing process. The interest rate is 6% compounded s First cost = $70,000 Semiannual operating cost = 6,000 Semiannual income = 18,000 Salvage value = 9,000 Life in years = 5 years O a. PW = $29,059 Ob. PW = $39,059 OC. PW = -$39,059 O d. PW = $19,059
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 8PROB
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