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A brewing company must choose one of two used bottling machines as a temporary measure before a plant expansion is approved and completed. The two
A brewing company must choose one of two used bottling machines as a temporary measure before a plant expansion is approved and completed. The two machines are: The Kram filler has a higher efficiency than the Zanni, and will provide operating cost savings of $6000 per year over the Zanni. At the end of five years the machine will no longer be required. The Kram will have a salvage value of $25,000, and the Zanni will have no salvage value. Draw the cash flow diagram for each alternative. Label as necessary. Which machine should be chosen? Use PRETAX PRESENT WORTH ANALYSIS and a MARR of 10%. A brewing company must choose one of two used bottling machines as a temporary measure before a plant expansion is approved and completed. The two machines are: The Kram filler has a higher efficiency than the Zanni, and will provide operating cost savings of $6000 per year over the Zanni. At the end of five years the machine will no longer be required. The Kram will have a salvage value of $25,000, and the Zanni will have no salvage value. Draw the cash flow diagram for each alternative. Label as necessary. Which machine should be chosen? Use PRETAX PRESENT WORTH ANALYSIS and a MARR of 10%
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