Determine which facility should be selected

Assignment Help Financial Management

Reference no: EM132033814

Two facilities are being investigated for an investment. The details of the twofacilities are given in the table below:

	Facility A	Facility B
First cost($)	52,000	63,000
Annual Maintenance & Operating costs ($)	15,000	9,000
Annual Benefits ($)	38,000	31,000
Salvage value ($)	13,000	19,000
Useful life , in years	4	6

Taking the MARR (Minimum attractive rate of return) to be 10%, determine which facility should be selected using the incremental rate of return method?

Reference no: EM132033814

Questions Cloud

Compute the total value of the inflows after five years : If the reinvestment assumption of the net present value method is used, what will be the total value of the inflows after five years?

What is the percentage change in the prices : If interest rates increase by 2%, what will be the new price of the two bonds? What is the percentage change in the prices?

Frequency of such a photon : Gamma rays are high-energy photons. In a certain nuclear reaction, a ?-ray of energy 0.574 MeV is produced. What's the frequency of such a photon.

Certified personal trainer in career : How does a basic first-aid course (only first aid) and the information obtained in that course help a certified personal trainer in their career?

Determine which facility should be selected : Taking the MARR (Minimum attractive rate of return) to be 10%, determine which facility should be selected using the incremental rate of return method?

Calculate the electric field as a function of radius : An insulating solid sphere of radius a has a uniform charge density and carries a total positive charge Q.

Determine the approximate monthly payment : A twelve month automobile insurance policy offers a choice of either a single payment of 2, 050 due at policy inception or monthly payments.

Determine the launch speed of the rocket : A 1200 kg rocket without an internal propulsion system is launched and reaches a maximum height of 350 000 m. Determine the launch speed of the rocket.

What is the skateboard velocity relative : What is the skateboard's velocity relative to the sidewalk at this instant? Be sure to include the correct algebraic sign with your answer.

User Account

All Pages