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A company needs to purchase a new machine to maintain its level of production. The company_is__considering three different machines. The costs savings and service life
A company needs to purchase a new machine to maintain its level of production. The company_is__considering three different machines. The costs savings and service life related to each machine are listed in the table below. 1 500 He first year and increasing by $ 750 | Machine A Machine B Machine C First Cost $ 26,000 $30,000 $ 28,000 Annual savings $12,000 $12, 500 $12,750 Hamanl maintenanvel $2,750 $2,500 every year thereafter $1,750 Salvage value $12,500 $6,000 $1,500 service life | 3 years 6 years 3 years Given a MARR of 12% and considering the rate of return method : in this problem p Is "Do nothing" an alternative to consider a) Yes b) No Not Surenned with formation provided
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