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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

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 5.4%. The following data is available for these new machines:

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Alternative Initial Annual Annual Operation and Salvage Cost Income Maintenance costs value A $26,000 $9,200 $875 $5,500 B $62,000 $17,100 $1,320 $7,900 C $35,000 $13,200 $1,250 $6,700

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