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3. PARC Co. has asked you to recommend a new nutcracker machine After months of hard research, you have collected the following data: Data KRAX

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3. PARC Co. has asked you to recommend a new nutcracker machine After months of hard research, you have collected the following data: Data KRAX SPLIT -NUT Life. Years 6 9 First Cost (FC) $202,000 $285,000 Benefit. Yearly (AB) $73,000 $88.000 Gradient (ABo) $1,200 S1,300 M&O Gradient (M&00) $600 $1.100 M&O Cost (M&O) $18,000 $34.000 Salvage Value $42,000 $48,000 Discussions with the accounting department reveal that a loan must be secured to purchase any machine. The loan data is as follows: Data 1CRAX SPL1T-NTT Doom Payment (% of FC) 30% 30% Loan Period, Years 6 9 Loan Payment $34,392.11 $37,441.93 The loan payments will be made annually. The lender will charge 12% interest with annual compounding. Calculate the net present worth of each machine and recommend which machine to purchase. Use a MARR of 15%. 3. PARC Co. has asked you to recommend a new nutcracker machine After months of hard research, you have collected the following data: Data KRAX SPLIT -NUT Life. Years 6 9 First Cost (FC) $202,000 $285,000 Benefit. Yearly (AB) $73,000 $88.000 Gradient (ABo) $1,200 S1,300 M&O Gradient (M&00) $600 $1.100 M&O Cost (M&O) $18,000 $34.000 Salvage Value $42,000 $48,000 Discussions with the accounting department reveal that a loan must be secured to purchase any machine. The loan data is as follows: Data 1CRAX SPL1T-NTT Doom Payment (% of FC) 30% 30% Loan Period, Years 6 9 Loan Payment $34,392.11 $37,441.93 The loan payments will be made annually. The lender will charge 12% interest with annual compounding. Calculate the net present worth of each machine and recommend which machine to purchase. Use a MARR of 15%

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