Business, 19.10.2020 18:01 ghari112345

A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $45,000 with $4,500 salvage value after 16 years. The other can be purchased and installed for $120,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $21,000 and $18,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes. a. Determine which alternative is less costly, based upon comparison of after-tax annual worth.
b. What must the cost of the second (more expensive) conveyor be for there to be no economic advantages between the two?

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A granary has two options for a conveyor used in the manufacture of grain for transporting, filling,...

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