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(Ch9) A manufacturer, whose MARR is 20%, may replace a manual material handling system with one of the two automated systems. What course of action

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(Ch9) A manufacturer, whose MARR is 20%, may replace a manual material handling system with one of the two automated systems. What course of action is appropriate? System A First cost =$100,000 System A Savings/year =$10,290 System A Useful life =15 years System B First Cost =$115,000 System B Savings / year =$16,880 System B Useful life =15 years a) Choose System A because PW of A>PW of B b) Choose System B because PW of B> PW of A c) Choose System A because EAC of A>EACB d) Choose System B because EAC of B> EAC A

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