Thomas completed a study of a $1 million 3-yearold DNA analysis and modeling system that DynaScope Enterprises
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Thomas completed a study of a $1 million 3-yearold DNA analysis and modeling system that DynaScope Enterprises wants to keep for 1 more year or dispose of now. His table (in $1000 units) details the analysis, including an anticipated $100,000 selling price (SP) at the end of next year, SL depreciation, taxes at the all inclusive rate of Te = 52%, and PW at the after-tax MARR of 5% per year. Thomas recommends retention since PW > 0. Critique the analysis to determine if he made the correct recommendation.
MARRMinimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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