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ldrl.com/Student/PlayerHomework.aspx?homeworkld-485702088&questionld-108xflushed-falseBicld-50073118icer; Operations Management, Summer 2018 shannon ONeal | 6/20/18 3:53 Pi Homework: Chapter 7 Homework score: 0 of 1 pt roblem 7s.33 10 of 10 (8 complete) HW Score: 75.28%, 7.53 of 10 EQuestion Help Original Cost Labor per year Maintenance per year Salvage value 15,000 $2,400 $4,000 S2,400 $20,000 S4800 $1,000 S7,200 He is told to assume that 1. The life of each machine is 3 years 2. The company thinks it knows how to make 8% on investments no more risky than this one. 3 Labor and maintenance are paid at the end of the year The NPV for Machine A S-29,588 (round your response to the nearest whole number and include a minus sign if necessary) The NPV for Machine B-stround vour response to the nearest whole number and include a mnus sian if necessarv Enter your answer in the answer box and then click Check Answer part ng

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A B C D Year 0 1 2 3 1 Original Cost 15000 2 Labour per Year 2400 2400 2400 3 Maintenance per year 4000 4000 4000 4 Salvage Value 2400 5 Free Cash Flow 15000 -6400 -6400 -4000 (Salvage Value- Labour cost-Maintenenace Cost 6 Discount Rate 8% NPV(A6,B5:D5)-A6 (Using Excel Formula) NPV -29588 A B C Year 0 1 2 3 1 Original Cost 20000 2 Labour per Year 4800 4800 4800 3 Maintenance per year 1000 1000 1000 4 Salvage Value 7200 5 Free Cash Flow 20000 -5800 -5800 1400 (Salvage Value- Labour cost-Maintenenace Cost 6 Discount Rate 8% NPV(A6,B5:D5)-A6 (Using Excel Formula) NPV -29232

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