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a) What is the FW of Machine A? b) What is the FW of machine B? c) What is the FW of machine C? 1.
a) What is the FW of Machine A?
b) What is the FW of machine B?
c) What is the FW of machine C?
1. A chemical company is considering buying a new production equipment. The following models are identified as viable candidates from the technical perspectives. The company's MARR is 8%. The estimated cash flows for each alternative are below. Suppose the cotermination assumption is made. Please round all your answers to the nearest integer. Machine A: Capital Investment: $36,000 Useful Life: 6 years Market Value at the End of Life: $4,000 Annual Revenues: $162,000 Annual Expenses: $126,000 Machine B: Capital Investment: $28,000 Useful Life: 11 years Market Value at the End of Life: $4,000 Annual Revenues: $126,000 Annual Expenses: $98,000 Machine C: Capital Investment: $51,000 Useful Life: 7 years Market Value at the End of Life: $4,000 Annual Revenues: $229,500 Annual Expenses: $178,500Step by Step Solution
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