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A company with a MARR of 15% must install one of two production machines that provide equivalent service (same benefits). Machine X has an initial
A company with a MARR of 15% must install one of two production machines that provide equivalent service (same benefits). Machine X has an initial cost of $40,000 with an annual operating and maintenance (O&M) cost of $30,000 and a salvage value of $5,000 after its 5-year life. Machine Y has an initial cost of $60,000 with an annual O&M cost of $20,000 and a salvage value of $12,000 after its 10-year life. Which choice below gives the correct PW (costs) equation for machine X over the comparative analysis period? O PW (costs) = $40k + $30K (P/A,15%,5) - $5k (P/F,15%,5) OPW (costs) = $40k + $40k (P/F,15%,5) + $30K (P/A,15%, 10) - $5k (P/F,15%,5) O PW (costs) = $40k + $40k (P/F,15%,5) - $5k (P/F,15%,5) - $5k (P/F,15%,10) O PW (costs) = $40k + $40K (P/F,15%.5) +$30k (P/A,15%.10) - $5k (P/F,15%.5) - $5k (P/F.15%, 10)
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