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A company is planning to install a new automated inspection machine on its production line Four different machines available. These four alternatives are mutually exclusive
A company is planning to install a new automated inspection machine on its production line Four different machines available. These four alternatives are mutually exclusive and the initial investment and annual cash flow is as follows Description Machine A S24,000 Machine B Machine C S30,400 Machine D S52,000 Capital Investment S49.600 Annual expenses Energy cost Labor Maintenance Taxes & Insurance Useful life $2,720 26,400 $2,750 24,000 $4,800 16,800 2,600 $5,040 14,800 1,600 480 1.800 607 2,000 1040 992 10 10 20 Assume that each machine has the same output capacity per year and has no market value at the of its useful life and the investment is expected to earn 10% per year. Which machine would you recommend using the present worth analysis? HAYOU READ THE INSTRUCTIONS? Show your work
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