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An organization is considering the purchase of new machines to automatically conduct some quality-control tasks. The machines are expected to save production cost which is
An organization is considering the purchase of new machines to automatically conduct some quality-control tasks. The machines are expected to save production cost which is given below as Annual Income. The machines are expected to be part of the production process for 5 years. The company has a minimum attractive rate of return (MARR) of 8.5% compounded quarterly. The following data is available for these new machines: Calculate the Net Present Worth (NPW) and Internal Rate of Return (IRR) of each alternative. Using incremental IRR analysis, rank the four alternatives based on economic feasibility. Using incremental benefit-cost analysis, rank the four alternatives based on economic feasibility
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