We are comparing the 2 cases so we need to take them out to a
common multiple of their service lifetime to make the Present value
comparison. In this case, that is 18
years.
discount rate | 4% |
year |
Mighty Delighty |
0 | -94511 |
1 | 3991.76 |
2 | 3991.76 |
3 | 3991.76 |
4 | 3991.76 |
5 | 3991.76 |
6 | -78592.24 |
7 | 3991.76 |
8 | 3991.76 |
9 | 3991.76 |
10 | 3991.76 |
11 | 3991.76 |
12 | -78592.24 |
13 | 3991.76 |
14 | 3991.76 |
15 | 3991.76 |
16 | 3991.76 |
17 | 3991.76 |
18 | 15918.76 |
NPV | -$1,54,940 |
HENCE, PRESENT WORTH = -$154940
Question 1 0.7 pts Cupid's Confections is interested in buying a new manufacturing system to help...
Cupid's Confections is interested in buying a new manufacturing system to help the company keep up with demand. The company has received bids for two different systems: First Cost Salvage Value Mighty Delighty Candylicious $95,435 $108,805 $17,493 $25,377 $10,455 $10,673 Annual Utilities Number of additional employees needed Number of additional pieces of candy that can be processed per month 15,288 Lifespan 6 years 35,148 9 years The company pays its employees an average salary of $49,094 per year. The company...
Cupid's Confections is interested in buying a new manufacturing system to help the company keep up with demand. The company has received bids for two different systems: Candylicious Mighty Delighty $85,977 $14,255 $10,454 $121,834 $25,251 $10,630 First Cost Salvage Value Annual Utilities Number of additional employees needed Number of additional pieces of candy that can be processed per month Lifespan 11,760 39,333 6 years 9 years The company pays its employees an average salary of $47,783 per year. The company...
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MAKE SURE TO USE THE LCM OF THE TWO LIFESPANS (18) TO CALCULATE
THE YEARS IN OPERATION
Cupid's Confections is interested in buying a new manufacturing system to help the company keep up with demand. The company has received bids for two different systems Mighty Delighty Candylicious $75577 $19924 $12809 4 $123216 $27042 $10656 7 22956 9 years First Cost Salvage Value Annual Utilities Number of additional employees needed Number of additional pieces of candy that can be processed per...
I NEED A CORRECT ANSWER PLS. PLS VERIFY THE ANSWER BEFORE
POSTING.
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