Abc inc must purchase a welding machine the following is, Ask an Expert

Economics

ABC Inc. must purchase a welding machine. The following is known about the machine and about possible cash flows. p=.40 p=.30 p=.30 First cost $40,000 $40,000 $40,000 Annual savings 2,000 5,000 8,000 Annual costs 12,000 8,000 6,000 Actual salvage value 4,000 5,000 6,500 The machine is expected to have a useful life of 8 years. The company has a MARR of 7%. Determine the NPW of the machine.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92188326

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