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An engineer is trying to decide which of two machines he should purchase. The information of the machines is given below. He wants to use
An engineer is trying to decide which of two machines he should purchase. The information of the machines is given below. He wants to use the incremental rate of return to make his decision. The company's MARR is 10%. Machine A Machine B) Initial Cost $40,000 $60,000 AOC $5,000 $4.000 Salvage Value $15,000 $15,000 Life, years 4 8 Prepare an incremental cash flow using the PW method and answer the following question: What is the cash flow value for year 0? An engineer is trying to decide which of two machines he should purchase. The information of the machines is given below. He wants to use the incremental rate of return to make his decision. The company's MARR is 10%. Machine A Machine B) Initial Cost $40,000 $60,000 AOC $5,000 $4.000 Salvage Value $15,000 $15,000 Life, years 4 8 Prepare an incremental cash flow using the PW method and answer the following question: What is the cash flow value for year 0
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