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ACME Car Wash has the option to invest in one ofthe following two vehicle dryer systems. MARR is 18%. Vehicle Dryer 1 Vehicle Dryer 2
ACME Car Wash has the option to invest in one ofthe following two vehicle dryer systems. MARR is 18%. Vehicle Dryer 1 Vehicle Dryer 2 Capital Investment $145,000 $157,000 Net Annual Revenues $42,000 $45,000 Residual Value $38,000 $40,000 Study Period 7 Years 7 Years a) Use PW, AW, and FW analyses to demonstrate which system is a better economic choice. Solve this problem manually and show all steps and interpretations. b) Which system is preferable if Vehicle Dryer 1 has a slightly higher risk of failure and downtime? why
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