Equivalent annual cost calculation) The Templeton Manufacturing and Di o n Company of Tacoma, Washington is contemplating the purchase of a new conveyor belt system for one of its regional distribution tacities Bothalamatives will accomplish the same task but the Edipse Modelis substantially more expensive than the Sabre Model and will not have to be replaced for 10 years, whereas the cheaper model will need to be replaced in just 5 years. The cost of purchasing the two systems and the costs of operating them annually over their expected lives is provided below
a. Templeton typically eva l vements in plant improvements using around rate of return of percent What are the MPVs for the two system?
b. Calculate the equivalent annual costs for the two systems
C. Based on your analysis of the two systems using both the NPV and EAC, which system de you recommend the company pick? Why? The NPV for Eclipse at a discount rate of 9 5 (Round to the nearest dolar)Get Finance homework help today
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