Florida International University Diagnostics Laboratory Present Worth HW

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znyra020

Business Finance

Florida International University

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  1. Problem:A diagnostics laboratory is considering one of the following microscopes with digital recording and pattern detection software:
    Option AOption BOptions C
    Cost$20,000$30,000$15,000
    Savings$1,199$2,199$1,000
    IRR6%9%7%
    Each machine will have a 20-year life with no salvage value. There is a lot of debate within the company as to whether these devices are really going to last long, but they assume MARR of 10% as reasonable.
    1. Calculate Present Worth for all Options
    2. Calculate IRR for all options
    3. Which Option do you recommend and why?
    4. What is MARR?

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Problem:A diagnostics laboratory is considering one of the following microscopes

with digital rec...


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