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1) A diesel manufacturer is considering two alternative production machines with the following information. The manufacturer uses an interest rate of 8% and wants to

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1) A diesel manufacturer is considering two alternative production machines with the following information. The manufacturer uses an interest rate of 8% and wants to use the Present Worth analysis method to compare these alternatives over an analysis period of 10 years. Initial Cost Estimated salvage value at end of useful life Alternative 1 $50,000 $10,000 Alternative 2 $75,000 $12,000

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