Sammy's Inc. is considering establishing a new machine to automate a meatpacking process. The machine...
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Sammy's Inc. is considering establishing a new machine to automate a meatpacking process. The machine will save $50,000 in labor annually. The machine can be purchased for $208864 today and will be used for 10 years. It has a salvage value of $10,000 at the end of its useful life. The new machine will require an annual operation and maintenance cost of $9,000. The firm uses an interest rate of 10%. What is the net present value of this machine? Round to the nearest cent. Answer: A biological engineering company is evaluating new lab equipment. The interest rate is 15% and the equipment's useful life is 4 years. Use NPV analysis to determine if this new lab equipment is economically feasible. Calculate the Net Present Worth O&M costs = $7,200 Salvage Value = $3,000 First cost - $22724 Yearly benefits = $18,000 Round to the nearest cent
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