3. 4.7 The manager of a canned-food processing plant is trying to decide between two different labeling machines. The photocell unit will have a first cost of $26,000, an AOC of $4800, and a service life of 4 years.

The capacitive sensor unit will cost $32,000 to buy and install and an estimated AOC of $2100 during its 4-year life. At an interest rate of 9%

per year, which is economically better on the basis of PW values?

Answer