N(YEAR)=30 (%)=5 . There is an alternative for a construction machine. This alternative requires...
50.1K
Verified Solution
Link Copied!
Question
Accounting
N(YEAR)=30 (%)=5
. There is an alternative for a construction machine. This alternative requires an investment of 115*10* TL The economic life of the project is Nyears. The discount rate is % i. It is estimated that annual maintenance costs will be 45*10TL in the first one-third of its economic life and 25*10TL in the last two-third of its economic life. The expected benefit of this alternative becomes 15*109 TL with a linear increase at the end of the first 15 years and continues as 35*102 until the from after 15 years to end of its economic life. The scrap value after the useful life is 595*102 TL. Find out whether it is profitable by finding the benefit / cost ratio with future value analysis for this machine. (45 point)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!