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1) Queen Consolidated, is examining if they should buy a machine. The machine costs $30,000 to purchase, has operating and maintenance costs (O&M) of $2,000

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1) Queen Consolidated, is examining if they should buy a machine. The machine costs $30,000 to purchase, has operating and maintenance costs (O&M) of $2,000 each year and is able to generate $10,000 in benefits each year. Salvage value after 5 years is expected to be 7000. What is the equivalent annual worth at 7% interest? 2) Star Labs must decide whether to buy Machine A or Machine B. After 5 years, Machine A will be replaced with another Machine A. With the interest rate is 10% and using the annual cash flow analysis, which machine should be purchased? Alternative A First Cosi $10.000 $20.000 Annual Oper.Cost $1.000 SO Salvage Value $10,000 $10.000 Useful Life 5 years 10 years 3) LexCorp is evaluating an alternative that will not incur in any initial cost. The project has the following cash flows in the next 5-years, which are: 58.250, 512,600. $9,750, $11.400, and S14,500. If the value of money is 12%, what is the equivalent uniform annual worth (EUAW) for the 5-year period? 4) Big Belly Burgers is examining the following alternatives. Using a 8% interest rate, determine which alternative, should be selected based on the annual cash flow analysis. A... B

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