Machine X and Y Each Sell for $1,000 000 and Each

question 33

Multiple Choice

Machine X and Y each sell for $1,000 000 and each has a life of 17 years.Machine X produces 5000 units per year,has an annual maintenance expense of $10,000 and a salvage value of $33,750.Machine Y produces U units per year,has an annual maintenance expense of $11,000 and no salvage value.If the interest rate is j₁ = 8%,what does the value of U have to be for the two machines to be equivalent?

• A)5042
• B)5084
• C)5357
• D)5500

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Definitions:

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave, which determines its color and energy.

Physical Characteristics

The observable attributes or features of an organism, such as height, eye color, and body type.

Saturation

The point at which a substance cannot absorb or dissolve any more of another substance, or in media, the state of being completely filled with content.

Physical Characteristics

The defining traits or features of a person's body, including height, weight, skin color, hair type, and facial features.