Answer:
16.9 months
Explanation:
Recovery time = Refinancing cost / Monthly savings
= $2,500 / $148
= 16.9 months
Answer
The answer and procedures of the exercise are attached in the image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
If I bougth the Machine at 14% interest.
This purchase is not justified
Depreciation expenses and credit interest are greater than the income generated
Explanation:
Machine 360000
Adittional cost 20000
Final Cost 380000
Salvage Value 73000
Machine value for depreciation 307000
year 1 307000 61400 245600
year 2 245600 61400 184200
year 3 184200 61400 122800
year 4 122800 61400 61400
year 5 61400 61400 0
Period Payment Capital Interest Loan
360000
1 104.862 54.462 50.400 305.538
2 104.862 62.087 42.775 243.451
3 104.862 70.779 34.083 172.672
4 104.862 80.688 24.174 91.984
5 104.862 91.984 12.878 0
Depreciation 307000
Interes 164.310
Expenses 471.310
Revenue 430.000