Suppose that you want to buy an equipment for their plant. The following two options are available (seebelow). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yr, which A/Cdo you recommend to buy if MARR is 16%. Use PW methodOffer AOffer BInvestmentPower consumption(kW)50,00055,0001.61.2Annual revenues19,00019,400(RO/year)Life time (yr)Salvage value (RO)82,0001,300

To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Suppose that you want to buy an equipment for their plant. The following two options are available (see below). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yE, which A/C do you recommend to buy if MARR is 16%. Use PW method Offer B 55,000 Offer A 50,000 Investment Power consumption (kW) Annual revenues 1.6 1.2 19,000 19,400 (RO/year) Life time (yr) Salvage value (RO) 8. 8. 2,000 1,300

Suppose that you want to buy an equipment for their plant. The following two options are available (see below). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yE, which A/C do you recommend to buy if MARR is 16%. Use PW method Offer B 55,000 Offer A 50,000 Investment Power consumption (kW) Annual revenues 1.6 1.2 19,000 19,400 (RO/year) Life time (yr) Salvage value (RO) 8. 8. 2,000 1,300

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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