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A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients. while being economical. The two alternatives

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A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients. while being economical. The two alternatives available have the following estimates: The company is in the 35% tax bracket and assumes classical straight line depreciation for alternative comparisons performed at a after-tax minimum acceptable rate of retum (MARR) of 10% per year. A salvage value of zero is used when depreciation is calculatec however, system B can be sold after 5 years for an estimated 18% of its first cost. System A has no anticipated salvage value. Determine which is more economical using an annual worth (AW) analysis worked by hand. The annual worth analysis for system A is determined to be $ The annual worth analysis for system B is determined to be $ System is selected

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