This topic contains a solution. Click here to go to the answer

Author Question: Stensels, a plastics processor, is considering the purchase of a high-speed extruder as one option. ... (Read 57 times)

Tazate

  • Hero Member
  • *****
  • Posts: 532
Stensels, a plastics processor, is considering the purchase of a high-speed extruder as one option.  The new extruder would cost $50,000 and would have a residual value of $5,000 at the end of its 8 year life.  The annual operating expenses of the new extruder would be $8,000.  The other option that Stensels has is to rebuild its existing extruder. The rebuilding would require an investment of $30,000 and would extend the life of the existing extruder by 8 years. The existing extruder has annual operating costs of $11,000 per year and does not have a residual value.  Stensels' discount rate is 14%.  Using net present value analysis, which option is the better option and by how much?
◦ Better by $4,330 to rebuild existing extruder
◦ Better by $6,083 to purchase new extruder
◦ Better by $4,330 to purchase new extruder
◦ Better by $6,083 to rebuild existing extruder


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Tazate on Jan 5, 2020

Carliemb17

  • Sr. Member
  • ****
  • Posts: 325
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly




Tazate

  • Member
  • Posts: 532
Reply 2 on: Jan 5, 2020
YES! Correct, THANKS for helping me on my review


bigsis44

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Excellent

 

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

For a complete list of videos, visit our video library