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A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and

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A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $85,000 with $4,000 salvage value after 16 years. The other can be purchased and installed for $125,000 with $5,000 salvage value after 16 years. Operation and maintenance for each is expected to be 21,500 and $13,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Conveyor 1:$ Conveyor 2: Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 3%

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