What is present value of the purchase and use of machine

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Reference no: EM132304697

Your company wants you analyze the present value of buying and using a machine used in manufacturing. The purchase price of the machine is $35,900. It has a 15 year lifetime. It will be used about 375 hours per month and is rated at 1,600 watts. Maintenance costs for the machine are estimated to be $50/month. The return on investment of your company is estimated to be 8.75%. Electricity costs 15.3 cents/kilowatt-hour. The lifetime of the machine is estimated to be 15 years. What is the present value of the purchase and use of the machine? Assume monthly compounding.

Reference no: EM132304697

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