Breakeven Analysis Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of...

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Accounting

Breakeven Analysis

Flo's Frozen Yogurt shop is evaluating new dispensingmachines.

The Flownator has a first cost of $30473 and annual expenses of$9126 that will increase by $553 per year. It will require anoverhaul at the end of year 4 at a cost of $5207. The Flownatorwill save $19007 per year in labor costs. The Flownator has asalvage value of $9575 and a lifespan of 12 years.

The YogGoo300 has a first cost of $23190 and annual expenses of$3648 that will increase by 1% per year. The YogGoo300 will saveFlo's $10791 per year in labor costs. The YogGoo300 has a lifespanof 5 years.

What must the salvage value of the YogGoo30 be to make itequally desirable to the Flownator? Use a MARR of 1% to make yourcalculation.

Enter your answer as follows: 12345

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Breakeven AnalysisFlo's Frozen Yogurt shop is evaluating new dispensingmachines.The Flownator has a first cost of $30473 and annual expenses of$9126 that will increase by $553 per year. It will require anoverhaul at the end of year 4 at a cost of $5207. The Flownatorwill save $19007 per year in labor costs. The Flownator has asalvage value of $9575 and a lifespan of 12 years.The YogGoo300 has a first cost of $23190 and annual expenses of$3648 that will increase by 1% per year. The YogGoo300 will saveFlo's $10791 per year in labor costs. The YogGoo300 has a lifespanof 5 years.What must the salvage value of the YogGoo30 be to make itequally desirable to the Flownator? Use a MARR of 1% to make yourcalculation.Enter your answer as follows: 12345

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