Machine A and B are two mutually exclusive alternatives with different lives. Based on the data provided and the LCM approach, determine the correct equations to find PW of each machine at an interest rate of 10% per year.
Machine A Machine B
Initial cost,$ - 85,000 - 100,000
Annual cost, $/year - 10,000 - 8,000
Salvage value, $ 10,000 25,000
Life, years 6 3
a. PWA = - 85,000 - 10,000 (P/A, 10%,6) + 10,000 (P/F, 10%,6)
PWB = - 100,000 - 8,000 (P/A, 10%,6) - 75,000 (P/F, 10%,3)
b. PWA = - 85,000 - 10,000 (P/A, 10%,6) + 10,000 (P/F, 10%,6)
PWB = - 100,000 - 8,000 (P/A, 10%,6) - 75,000 (P/F, 10%,3) + 25,000 (P/F, 10%,6)
c. PWA = - 85,000 - 10,000 (P/A, 10%,6) + 10,000 (P/F, 10%,6)
PWB = - 100,000 - 8,000 (P/A, 10%,6) + 25,000 (P/F, 10%,6)
d. PWA = - 85,000 - 10,000 (P/A, 10%,6) + 10,000 (P/F, 10%,6)
PWB = - 100.000 - 8.0001P/A. 10% 6) - 100 0001P/E 10% 31+25.000/P/E 10% 6)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Machine A and B are two mutually exclusive alternatives with different lives. Based on the data provided and the LCM approach, determine ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Transent Foods announced that its current sales are $1,233,450 this year. The company forecasts a growth rate of 16 percent for the foreseeable future. How long will it take the firm to produce earnings of $3 million? (Round off to the nearest year.
Answers (1)
The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments is: A. Strategic management B. Internationalization C.
Answers (1)
Sam works as a tax preparer for a local accounting office. What kind of education would have prepared Sam best for his current position? high school diploma internship at a tax office bachelor's degree in accounting master's degree in law
Answers (2)
Which of the following statements about the market structure of monopoly are correct? a. A monopoly involves a market one or a few major firms. b. The monopolist can charge any price she wishes and still operate at maximum profit. c.
Answers (1)
Which poet, who seems be using iambic pentameter, bends the meter most? A. Emma Lazarus B. Emily Dickinson C. John Donne D. Gerard Manley Hopkins
Answers (1)
New Questions in Business
Which of the following is included in GDP? Group of answer choices revenue from the sale of a three-year old car the receipts from a sale of land the fees charged for a stock broker's services the value of lawn care service provided by a
Answers (1)
Which of these is an example of rebranding? O A. A new motto O B. More employees O C. Higher pricing O D. More investments
Answers (1)
You're planning a really big surprise trip for your 10-year anniversary. However, the internet is down and you know you need to buy the airline tickets during tomorrow's flash sale.
Answers (1)
Answer the following statement true (T) or false (F) : Mark is a cash basis taxpayer. He is a partner in the M & M partnership, and his share of the partnership's profits for 2019 is $90,000.
Answers (1)
A supermarket manager schedules the workers in the supermarket to ensure that enough cash register clerks are available at different times during the day to handle the expected demand from customers.
Answers (1)