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A company that manufactures amplified pressure transducers wishes to decide between the machines shown- variable speed (VS) and dual speed (DS). Compare them on the

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A company that manufactures amplified pressure transducers wishes to decide between the machines shown- variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 23% per year. The two guesses for the RORs are: 20% and 25% Machine Vs Machine DS -340000 -500,000 Initial cost, $ Annual operating and maintenance cost, $ per year -70000 -64000 Annual revenue, $ per year 180000 190,000 40,000 Salvage value, $ Life, years 38,000 5 10 a) Generate Incremental Cash Flow Estimates Table b) Construct the Incremental Cash Flow Diagram c) Determine the Incremental Present Worth cash flow equation. d) Using incremental Present Worth cash flow equation for the incremental rate of return analysis, select which machine (VS or DS) will be the best option based on Incremental Rate of Return (AIRR) e) Solve the AW for each option and determine which option is the best

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