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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 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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