Calculate the AW value for the Machine A.

AWa(11%)=

Calculate the AW value for the Machine B.

AWb(11%)=

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 39%, and an after-tax MARR of 11% Capital investment Life Terminal BV (and MV) Annual receipts Annual expenses Machine A $15,000 12 years $4,500 $152,000 $140,000 Machine B $31,000 8 years $2,000 $186,000 $177,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year