subject
Business, 01.08.2020 03:01 shelby8385

Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for its factory. Because both machines perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered machine will cost more, but it will be less expensive to operate; it will cost $102,000, whereas the coal-powered machine will cost $69,500. The cost of capital that applies to both investments is 10%. The life for both types of machines is estimated to be 6 years, during which time the net cash flows for the electric-powered machine will be $26,150 per year, and those for the coal-powered machine will be $20,000 per year. Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of machine, and decide which to recommend

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 10:00
Your father offers you a choice of $120,000 in 11 years or $48,500 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. if money is discounted at 11 percent, what is the present value of the $120,000?
Answers: 3
question
Business, 22.06.2019 11:00
While on vacation in las vegas jennifer, who is from utah, wins a progressive jackpot playing cards worth $15,875 at the casino royale. what implication does she encounter when she goes to collect her prize?
Answers: 1
question
Business, 22.06.2019 18:30
What is the relationship between credit and debt?
Answers: 1
question
Business, 23.06.2019 06:00
Who led henry fords as an entrepreneur
Answers: 1
You know the right answer?
Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for it...
Questions
Questions on the website: 13722367