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Don't use excel Problem 2 (30 points) A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual

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Problem 2 (30 points) A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 23% per year. The two guesses for the RORs are: 20% and 25% Initial cost, Annual operating and maintenance cost, S per year Machine VS -340000 -70000 Machine DS -500,000 -64000 Annual revenue S per year Salvage value S Life, years 180000 38.000 5 190,000 40.000 10 a) What is the least common multiple of the two alternatives b) Generate Incremental Cash Flow Estimates Table c) Construct the Incremental Cash Flow Diagram d) Determine the Incremental Present Worth cash flow equation. e) Using incremental Present Worth cash flow equation for the incremental rate of return analysis, select which machine (V'S or DS) will be the best option based on Incremental Rate of Return (AIRR) f) Solve the AW for each option and determine which option is the best Problem 2 (30 points) A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 23% per year. The two guesses for the RORs are: 20% and 25% Initial cost, Annual operating and maintenance cost, S per year Machine VS -340000 -70000 Machine DS -500,000 -64000 Annual revenue S per year Salvage value S Life, years 180000 38.000 5 190,000 40.000 10 a) What is the least common multiple of the two alternatives b) Generate Incremental Cash Flow Estimates Table c) Construct the Incremental Cash Flow Diagram d) Determine the Incremental Present Worth cash flow equation. e) Using incremental Present Worth cash flow equation for the incremental rate of return analysis, select which machine (V'S or DS) will be the best option based on Incremental Rate of Return (AIRR) f) Solve the AW for each option and determine which option is the best

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