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Economics A manufacturer is considering purchasing one of two comparable machines for a new product line. Using a MARR of 15% per year, select the
Economics A manufacturer is considering purchasing one of two comparable machines for a new product line. Using a MARR of 15% per year, select the better option using a future worth analysis over (a) the expected usage period, and (b) the maximum life. What are the future values for each option and (a) and (b). Option A B First cost, S 44,000 68,000 AOC, S per year 15,000 22,000 Expected salvage value, 5 7,000 10,000 Expected use, years 3 6 Maximum life, year 4 8
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