The Canton Sundae Corporation is considering the replacement of an existing machine. The new machine, called an X-tender, would provide better…
8. The Canton Sundae Corporation is considering the replacement of an existing machine. The new machine, called an X-tender, would provide better sundaes, but it costs $120,000. The X-tender requires $20,000 in additional net working capital, which will be recouped at the end of the project. The machine’s useful life is 10 years, after which it can be sold for a salvage value of $40,000. […]