Your company will replace an obsolete machine press. You havetwo bids, summarized below, to consider. Your company uses anafter-tax MARR of 12%, Straight-Line depreciation with an incometax rate of50%. Select the most economical alternative usingafter-tax analysis.
Machine Useful Life (years) Initial Cost Annual Operating Cost Annual Revenue Salvage Value A 5 $60,000 75,000 125,000 0 B 5 $76,000 70,000 130,000 5,000
Your company will replace an obsolete machine press. You have two bids, summarized below, to consider. Your company uses
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am