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and also calculate the AW value for the Machine B. AW_A (8%) = $ Two alternative machines will produce the same product, but one is
and also calculate the AW value for the Machine B.
AW_A (8%) = $
Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income tax rate of 28%, and an after-tax MARR of 8%. Machine A Machine B Capital investment $19,000 $28,000 Life 11 years 8 years Terminal BV (and MV) $3,000 $0 Annual receipts $147,000 $188,000 Annual expenses $144,000 $175,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% nor voar Calculate the AW value for the Machine A. AWA(8%) = $ - 194.947 (Round to the nearest dollar.)Step by Step Solution
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