The annual worth of the computer-controlled machine is

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Two stamping machines are under consideration for purchase by a metal recycling company.

The manual model will cost $25,000 to buy with an eight-year life and a $5,000 salvage value. Its annual operating costs will be $16,000.

A computer-controlled model will cost $95,000 to buy and it will have a twelve-year life if upgraded at the end of year six for $15,000.

Its terminal salvage value will be $23,000, with annual operating costs of $7,500 for labor and $2,500 for maintenance.

The company's minimum attractive rate of return is 18%. The annual worth of the computer-controlled machine is nearest to ?

Reference no: EM131806050

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