Answer Happy

Two machines are being considered for purchase. The Sande 10 costs $36 000 new and is estimated to last five years. The cost to replace the Sande 10 will increase by 6% each year. Annual operation and maintenance costs are $2 400. It will have a trade-in (salvage) value of $3 000. The Sande 20 costs $76 000 to buy, but it will last 10 years and will have a trade-in (salvage) value of $4 000. The cost of operation and maintenance is $1 400 per year. Compare the two machines using present worth analysis and state the basis of your comparison. Include a cash-flow diagram for each alternative. Assume all interest rates at 6% per year unless otherwise stated. The total cost of the Sande 10 is $ 102.176.12 The total cost of the Sande 20 is $ 86,000 The Sande 20 is cheaper than the Sande 10
Two machines are being considered for purchase. The Sande 10 costs $36 000 new and is estimated to last five years. The cost to replace the Sande 10 will increase by 6% each year. Annual operation and maintenance costs are $2 400. It will have a trade-in (salvage) value of $3 000. The Sande 20 costs $76 000 to buy, but it will last 10 years and will have a trade-in (salvage) value of $4 000. The cost of operation and maintenance is $1.400 per year. Compare the two machines using present worth analysis and state the basis of your comparison, Include a cash-flow diagram for each alternative. Assume all interest rates at 6% per year unless otherwise stated. The total cost of the Sande 10 is $ 102.176.12 The total cost of the Sande 20 is $ 86,000 The Sande 20 is cheaper than the Sande 10 Ⓒ