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PERIODO MÁQUINA A PERIODO MÁQUINA B 30,000.00 42,000.00 1 9,500.00 1 8,600.00 2 9,500.00 2 10,940.00 3 10,400.00 3 11,200.00 4 11,200.00 4 14,670.00 12,340.00 6 11,356.00

PERIODO MÁQUINA A PERIODO MÁQUINA B 30,000.00 42,000.00 1 9,500.00 1 8,600.00 2 9,500.00 2 10,940.00 3 10,400.00 3 11,200.00 4 11,200.00 4 14,670.00 12,340.00 6 11,356.00

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 3DQ
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6. A lamp socket die-cutting company has two alternatives to purchase a new die-cutting machine, where the initial investment (in US dollars) and the projected net income stream for each alternative is shown in the following tables; the number of periods corresponds to the number of years of service life.

If the company's purchasing committee considers a capital cost of 12.50% for internal financing, which machine should be purchased?

PERIODO MÁQUINA A PERIODO MÁQUINA B 30,000.00 42,000.00 9,500.00 1 8,600.00 2 9,500.00 10,940.00 10,400.00 3 11,200.00 4 11,200.00 4 14,670.00 12,340.00 11,356.00 2.
Transcribed Image Text:PERIODO MÁQUINA A PERIODO MÁQUINA B 30,000.00 42,000.00 9,500.00 1 8,600.00 2 9,500.00 10,940.00 10,400.00 3 11,200.00 4 11,200.00 4 14,670.00 12,340.00 11,356.00 2.
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