Select between the two options using the corporate MARR of 15% per year and a future worth Option First Cost AOC, per Year Expected Market Value Expected Use The future worth of option D is $ The future worth of option E is $ Option (Click to select) is selected. D $-92,000 $-15,000 $6,500 3 years E $-102,000 $-28,000 $5,250 6 years

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 2E
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Required information
Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one
of its production lines for a new contract, but it plans to sell the equipment at or before its expected life is reached at an
estimated market value for used equipment.
Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period.
Option
First Cost
AOC, per Year
Expected Market Value.
Expected Use
The future worth of option D is $
The future worth of option E is $
Option (Click to select) is selected.
D
$-92,000
$-15,000
$6,500
3 years
E
$-102,000
$-28,000
$5,250
6 years
Transcribed Image Text:Required information Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment to streamline one of its production lines for a new contract, but it plans to sell the equipment at or before its expected life is reached at an estimated market value for used equipment. Select between the two options using the corporate MARR of 15% per year and a future worth analysis for the expected use period. Option First Cost AOC, per Year Expected Market Value. Expected Use The future worth of option D is $ The future worth of option E is $ Option (Click to select) is selected. D $-92,000 $-15,000 $6,500 3 years E $-102,000 $-28,000 $5,250 6 years
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