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9. An engineer must recommend one of two machines for integration into an upgraded manufacturing line. She obtains estimates from two salespeople. Salesman A gives
9. An engineer must recommend one of two machines for integration into an upgraded manufacturing line. She obtains estimates from two salespeople. Salesman A gives her the estimates in future (then-current) dollars, while saleswoman B provides the estimates in today's (constant-value) dollars. The company has a MARR of a real 15% per year, and it expects inflation to be 5% per year. Use PW analysis to determine which machine the engineer should recommend. Salesman A, Saleswoman B, Future $ Today's $ First cost, $ -60.000 -95.000 AOC, $/year -55,000 -35.000 Life, years 10 10
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