A company is considering the purchase of a CNC machining center. Two alternatives are under consideration, On the basis

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A Company Is Considering The Purchase Of A Cnc Machining Center Two Alternatives Are Under Consideration On The Basis 1 (126.32 KiB) Viewed 17 times

A company is considering the purchase of a CNC machining center. Two alternatives are under consideration, On the basis of their present worth values, and using a real interest rate of 9% per year and an inflation rate of 5% per year, compare them a) without any adjustment for inflation and b) with inflation considered. Model, X Model, Y First cost, $ Annual operating cost, $/year Salvage value, $ Life, years - 120,000 45,000 24,000 8 - 150,000 30,000 32,000 8