The engineers of a company, propose two alternative plans for the realization of a project that will last 20 years. Plan "A" requires a certain type of machinery, which it must acquire through the following investments: $ 80,000 first, $ 50,250 five years later, and $ 33,365 ten years later. Annual maintenance costs will be $ 1,875, the first 4 years, $ 3,100 for the next 6 years, and $ 4,300 for the last 10 years. The plan. "Z" has an initial investment of $ 100,000, followed by one of $ 42,000 at the end of 11 years; Annual maintenance costs for this plan are $ 2,100 for the first 10 years and $ 4,200 for the remaining 10 years. Residual values are estimated at 25.8% of your initial investment. The minimum attractive rate is 7%. Determine which plan is the most economical by analyzing the present value method.
The engineers of a company, propose two alternative plans for the realization of a project that will last 20 years. Plan "A" requires a certain type of machinery, which it must acquire through the following investments: $ 80,000 first, $ 50,250 five years later, and $ 33,365 ten years later. Annual maintenance costs will be $ 1,875, the first 4 years, $ 3,100 for the next 6 years, and $ 4,300 for the last 10 years. The plan. "Z" has an initial investment of $ 100,000, followed by one of $ 42,000 at the end of 11 years; Annual maintenance costs for this plan are $ 2,100 for the first 10 years and $ 4,200 for the remaining 10 years. Residual values are estimated at 25.8% of your initial investment. The minimum attractive rate is 7%. Determine which plan is the most economical by analyzing the present value method.
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