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2-) A company is considering the purchase of a new machine. The capital investment requirement is $345,000 and the estimated market value of the machine
2-) A company is considering the purchase of a new machine. The capital investment requirement is $345,000 and the estimated market value of the machine after a six-year study period is $115,000. Annual revenues attributable to the new camera system will be $120,000, whereas additional annual expenses will be $22,000. The corporation's MARR is 20% per year. Part a) Should the company buy the machine? Answer using AW method. Part b) You have been asked by management to determine the ROR of this project and to make a recommendation. First check Descartes and Nordstrom's Criterion. Then, solve first by linear interpolation and then by using a spreadsheet
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