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In: Economics

VYS Inc will purchase a new machine that costs $30,000 and is expected to last 12...

VYS Inc will purchase a new machine that costs $30,000 and is expected to last 12 years with a salvage value of $3,000. Annual operating expenses for first year is $9,000 and increase by $200 each year thereafter. Annual income is expected to be $12,000 per year. If VYS’s MARR is 10%, determine the NFW of the machine purchase.

Solutions

Expert Solution

The given data is executed in an excel:

NPW = -$14,583.28

The excel calculation and formula:

Please rate if helps, thank you.

Rahul Sunny answered 2 years ago
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