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2. Kuwait Flour Mills Company is comparing between two macaroni producing machines. The two machines are to be used for 15 years and sold for

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2. Kuwait Flour Mills Company is comparing between two macaroni producing machines. The two machines are to be used for 15 years and sold for an estimated salvage value Machine A First Cost, KD Salvage, KD AOC, KD/year -25,000 4,000 -2,500 Machine B -30,000 6,000 -1,000 15 Life, years 15 The before-tax MARR is 12% per year, after-tax MARR is 6% per year, and tax rate is 45% for machine and 60% for machine 2. Select a machine on the basis of a. Before-tax PW analysis, b. After-tax PW analysis using classical SL depreciation over the 15-year life

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