Eastern corporation replace an old vibratory finishing machine and purchased new machine for $ 25,000. The salvage value of old machine is 5,000 .The useful life of the new machine is 10 years , at...


Eastern corporation replace an old vibratory<br>finishing machine and purchased new machine<br>for $ 25,000. The salvage value of old<br>machine is 5,000 .The useful life of the new<br>machine is 10 years , at the end of which the<br>machine is estimated to have a salvage value<br>of 5,000. The machine generates net annual<br>revenues of $ 6,000 . The annual operating<br>and maintenance expenses are estimated to<br>be $ 1,000 . Calculate NPW if Eastern's MARR<br>( rate of return ) is 10% ?<br>A. $ 12,357<br>B. $ 12,651<br>C. $ 13,640<br>D. None of these<br>

Extracted text: Eastern corporation replace an old vibratory finishing machine and purchased new machine for $ 25,000. The salvage value of old machine is 5,000 .The useful life of the new machine is 10 years , at the end of which the machine is estimated to have a salvage value of 5,000. The machine generates net annual revenues of $ 6,000 . The annual operating and maintenance expenses are estimated to be $ 1,000 . Calculate NPW if Eastern's MARR ( rate of return ) is 10% ? A. $ 12,357 B. $ 12,651 C. $ 13,640 D. None of these

Jun 02, 2022
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