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1) Calculate the AW value for Machine A and B 2) Do we select machine A, B, or nothing? Please no excel. Two alternative machines
1) Calculate the AW value for Machine A and B
2) Do we select machine A, B, or nothing?
Please no excel.
Two alternative machines will produce the same product, the following are relevant data. Please determine which is the better alternative, assuming repeatability and using SL depreciation, an income tax rate of 25%, and an after-tax MARR of 10%. Machine A Machine B Capital investment $25,000 $35,000 Life 12 years 8 years $0 Terminal BV $5,000 Annual receipts $160,000 $198,000 Annual $148,000 $180,000 expenses Two alternative machines will produce the same product, the following are relevant data. Please determine which is the better alternative, assuming repeatability and using SL depreciation, an income tax rate of 25%, and an after-tax MARR of 10%. Machine A Machine B Capital investment $25,000 $35,000 Life 12 years 8 years $0 Terminal BV $5,000 Annual receipts $160,000 $198,000 Annual $148,000 $180,000 expensesStep by Step Solution
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