Question

a.ca mouleunotlemptph Trading Importation Jose Espana 20 55 50 40 Question 7 The General Hospital is evaluating new office equipment offered by four companies. The useful ife of the equipment is 5 years Not yet answered Marked out of 1.00 C 2 C 1 C3 C4 P Fag duestion $20.000 First cost $15,000 $18,000 $25,000 1049 Maintenance and 1.600 1230 400 operating cost (annual) Annual benefit 9.000 13,000 11.000 8.000 Salvage value 5002 4,500 3.500 6.000 When doing an incremental analysis looking at it from an investment perspective the comparles need to be ranked as follows Salect one: C4-C 3-C 2-C 1 C1-C 2-C4-C3 C3-C 4-C 2-C 1 C1-C 2-C 3-C 4 Question 8 The General Hospital is evaluating new office equipment offered by three companies Not yet answerd Maked out of 1.00 Company A Company B Company C

Answer 1

		C1	C2	C3	C4
	Cash Inflows	$       40,000	$         45,000	$           65,000	$             55,000
	Salvage Value	$         5,002	$           3,500	$              6,000	$               4,500
Less:	Initial Purchase Cost	$       15,000	$         18,000	$           25,000	$             20,000
Less:	Maintenance cost	$         8,000	$           6,150	$              2,000	$               5,245
	Net Value	$       22,002	$         24,350	$           44,000	$             34,255
	Ranking:	IV	III	I	II
	Therefore, the correct order is: C3 - C4 - C2 - C1