You have been asked to determine the most fınancially advantageous option for a new Product Packaging machine. It has been determined by the Market Department that product packaging actually makes a difference in the anticipated Yearly Revenue generated by this product and have been provided below The director now wants an annual worth analysis performed on the two final designs based on a shortened project life of only 9 years. Compare the alternatives at the MARR of 10% per year. (all dollar values are in thousands) Packaging Packaging Machine Design Machine Design A B First Cost, $ -900 -1,500 AOC, $ per year -200 -300 Salvage value, S$ (after 7 years of use) Salvage value, S (after 3 years of use) 200 100 Salvage value, $ (after 2 years of use) 20 50 Annual revenue, S per year 800 900 Life, years 3 AW (ŠK per year) for one full life 268.312 312.967 cycle AW for a particle life of 2 years ($K 90.953 -240.476 per year) Assuming that the AW values for Designs A and B provided in the table are correct, which of the following equations presented below will generate the correc AW value for Design B with a nine (9) year period of need?

You have been asked to determine the most fınancially advantageous option for a new Product Packaging machine. It has been determined by the Market Department that product packaging actually makes a difference in the anticipated Yearly Revenue generated by this product and have been provided below The director now wants an annual worth analysis performed on the two final designs based on a shortened project life of only 9 years. Compare the alternatives at the MARR of 10% per year. (all dollar values are in thousands) Packaging Packaging Machine Design Machine Design A B First Cost, $ -900 -1,500 AOC, $ per year -200 -300 Salvage value, S$ (after 7 years of use) Salvage value, S (after 3 years of use) 200 100 Salvage value, $ (after 2 years of use) 20 50 Annual revenue, S per year 800 900 Life, years 3 AW (ŠK per year) for one full life 268.312 312.967 cycle AW for a particle life of 2 years ($K 90.953 -240.476 per year) Assuming that the AW values for Designs A and B provided in the table are correct, which of the following equations presented below will generate the correc AW value for Design B with a nine (9) year period of need?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 1nM

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