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3:44 29% Read Only - You can't save changes to this.... Problem 1 (10 points). Consider two alternative machines as follows: Machine A Machine Initial
3:44 29% Read Only - You can't save changes to this.... Problem 1 (10 points). Consider two alternative machines as follows: Machine A Machine Initial Cost 40,000 KD 60,000 KD Annual Cost 18,000 KD 14,000 KD Salvage (Market) Value 8,000 KD 20.000 KD Life 3 years 6 years a) Compare two alternative machines using present worth analysis at i = 10% per year and determine the best alternative. b) If you use a 3-year study period, for what salvage value of machine B at the end of year 3, alternative B would be selected? [Note: Set the PWs equal for 3-years study period. Salvage values of Sx=8000; So= X(unknown)
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