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3. In a leather manufacturer company, decisions regarding approval of alternatives for cap- ital investment are based upon an expected MARR of 15% per year.

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3. In a leather manufacturer company, decisions regarding approval of alternatives for cap- ital investment are based upon an expected MARR of 15% per year. The five packaging devices listed in the table below should be compared assuming a 6-year life and zero salvage value. Budget limit of the leather company is $100,000. Alternatives B D E -52,000 -38,000 -70,000 -50,000 -60,000 14,600 11,000 19,200 14,100 5,800 First Cost ($) Annual Revenues ($) (a) Which device(s) should be selected if the alternatives are independent? (b) Which device should be selected if the alternatives are mutually exclusive? ago? 3. In a leather manufacturer company, decisions regarding approval of alternatives for cap- ital investment are based upon an expected MARR of 15% per year. The five packaging devices listed in the table below should be compared assuming a 6-year life and zero salvage value. Budget limit of the leather company is $100,000. Alternatives A B D E -52,000 -38,000 -70,000 -50,000 -60,000 14,600 11,000 19,200 14,100 5,800 First Cost ($) Annual Revenues ($) (a) Which device(s) should be selected if the alternatives are independent? (b) Which device should be selected if the alternatives are mutually exclusive

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