New machine that is more productive and energy efficient

Assignment Help Financial Management

Reference no: EM13971973

EAC Problem

XYZ Inc. presently is operating a machine that costs $50,000 to run annually. A sales rep has provide some information on a new machine that is more productive and energy efficient. This machine will have a useful life of 7 years, cost $38,000 to purchase, and have $42,500 in annual costs. Should XYZ purchase this new machine if the discount rate is 10%?

Reference no: EM13971973

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