The costs and revenues of 2 alternatives for a machine are given below. Determine which alternative is economically viable using the present value method when 20.56% annual discount rate compounded 4-...

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The costs and revenues of 2 alternatives for a machine are given below. Determine which alternative is<br>economically viable using the present value method when 20.56% annual discount rate compounded 4-<br>month maturity. (please make numerical operation)<br>parameters<br>1. machine<br>2. machine<br>Initial investment cost<br>300 000<br>300 000<br>Salvage cost (based on initial investment cost)<br>%25<br>%20<br>Annual operating cost for the first year<br>15000<br>15000<br>Annual interest rate of operating cost<br>%18<br>%22<br>First year income<br>200 000<br>300 000<br>Annual decrease rate of amount of income<br>5000<br>%1.5<br>Economic life<br>10 years<br>16 years<br>Show transcribed image text<br>

Extracted text: The costs and revenues of 2 alternatives for a machine are given below. Determine which alternative is economically viable using the present value method when 20.56% annual discount rate compounded 4- month maturity. (please make numerical operation) parameters 1. machine 2. machine Initial investment cost 300 000 300 000 Salvage cost (based on initial investment cost) %25 %20 Annual operating cost for the first year 15000 15000 Annual interest rate of operating cost %18 %22 First year income 200 000 300 000 Annual decrease rate of amount of income 5000 %1.5 Economic life 10 years 16 years Show transcribed image text

Jun 04, 2022

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The costs and revenues of 2 alternatives for a machine are given below. Determine which alternative is economically viable using the present value method when 20.56% annual discount rate compounded 4-...

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