01:02 Use the data from the following table, and an interest of 10% per year. Initial cost, S Net Revenue, S/year Salvage value, S Life, years Machine A - 50,000 10,000 25,000 Machine - 80,000 20,000 10,000 01. In comparing the machines on a present worth basis, PW for machine B is closest to: A. S-109,450 B. S-39,850 C. S -22,750 D. 22,750 E. $ 39,850 Formula Used: Which machine should be selected? a. Neither is good 02. b. machine A c. machine B d. Both are equally good Decision criterion: 03-05 The five alternatives are being evaluated by the rate of return method, using the following information Incremental IRR, %, when compared with alternative Initial Individual 25,000 -35,000 40,000 -60,000 15.0 13.0 16.0 25.4 18.0 27.3 19.4 35.3 25.0 10.038.5 24.4 46.5 12.0 15.0 I falternatives W and X are mutually exclusive and MARR 8% per year, which one of the two alternatives is preferable? A. Neither is good 03. B. alternative X C. alternative WD. Both are equally good Decision criterion: If all five alternatives are independent, MARR-16% per year and the budget is limited to $150,000, which alternatives should be selected? A. X and Y B. X and Z C. Y and Z D. X, Y and Z Decision criterion: o5. Alternative V is contingent on Z; and W, X, Y and Z are mutually exclusive; which alternative (s) should be selected if MARR-15% per year? A. only V B. V and 2 C. W, X and Y D. V. Y and Z Decision criterion