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 19 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
Gracias!


dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

For a complete list of videos, visit our video library