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(1) Veri-Trol, Inc. manufactures in-situ calibration verification systems that confirm flow measurement accuracies without removing the meters. The company is considering modifying the main assembly
(1) Veri-Trol, Inc. manufactures in-situ calibration verification systems that confirm flow measurement accuracies without removing the meters. The company is considering modifying the main assembly line with one of the enhancements shown below. If the companys real annual MARR is 11%, which process has the lower annual cost? Include an inflation rate of 3% per year in the analysis? Process X Process Y First cost, $ -57,000 -93,000 Operating cost, $ per year -45,000 -24,000 Salvage value, $ 2,000 8,000
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