A computer manufacturing company is trying to decide whether to purchase specialized assembly equipment today or wait 12

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A computer manufacturing company is trying to decide whether to purchase specialized assembly equipment today or wait 12

Post by answerhappygod »

A computer manufacturing company is trying to decide whether to
purchase specialized assembly equipment
today or wait 12 years from now when the equipment will be first
needed.
If you were to purchase the equipment today, it would cost
$859,000
12 years from now the equipment will cost $1,589,150
The bank is paying 9.00% interest per year, compounded
monthly.
Should you buy the equipment now or wait 12 years to buy it?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”