Answer:
MACHINE 7745: -20,862.72
MACHINE A37Y: -18,281.02
Explanation:
production: 30,000,000
Machine 1
cost 10,000
life 10 years
salvage value 1,000
operating cost 0.01 per 1000 units. 0.01 x 30,000,000/1,000 = 300
Minimun accepted rate of retrun 6%
Future value of the Operating cost
[tex]C \time \frac{(1+r)^{time} -1}{rate} = FV\\[/tex]
C = 300
r = 0.06
time = 10
[tex]300 \time \frac{(1+0.06)^{10} -1}{0.06} = FV\\[/tex]
FV -$3,954.24
Future Value of the Investment
[tex]Principal \time (1+ r)^{time} = Amount[/tex]
[tex]10,000\time (1+ 0.06)^{10} = -17,908.48[/tex]
Total -17,908.48 - 3,954.24 + 1,000 = -20,862.72
Machine 2
8,000
life 10 years
no salvage value
operating cost 300
FV of the operating cost: - 3,954.24
FV of the Investment: -14,326.78
[tex]8,000\time (1+ 0.06)^{10} = -14,326.78[/tex]
Total: -3,954.24 - 14,326.78 = -18,281.02
Edit: sorry but the math toll is not working as it should be =(