Two copler machines can be used for fast printing. Which machine should be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Machine A N16,334 Machine B Hrst cost, $ Annual operating cost, $ per year Salvage value, S Update cost at year 2, 5 Life, years 598,852 65,061 32,000 B0,000 130,000 T5,000

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
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Two copier machines can be used for fast printing. Which machine should be selected on the basis of a present worth analysis using the LCM, at
an interest rate of 10% per year?
Answer the below questions to select the best Option.
Machine A
1.116,334
Machine B
598,852
First cost,$
Annual operating cost, S per
year
65,061
32,000
Savage value, S
Update cost at year 2, $
ife, years
80,000
130,000
15,000
8.
PW for Process A=
Transcribed Image Text:Two copier machines can be used for fast printing. Which machine should be selected on the basis of a present worth analysis using the LCM, at an interest rate of 10% per year? Answer the below questions to select the best Option. Machine A 1.116,334 Machine B 598,852 First cost,$ Annual operating cost, S per year 65,061 32,000 Savage value, S Update cost at year 2, $ ife, years 80,000 130,000 15,000 8. PW for Process A=
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