engineering economics

Problem 3. The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc. The company interest rate (MARR) is 12%. Conduct economic analysis using the present worth method and recommend which machine should be purchased. Data Useful Life, Years First Cost Salvage Value Annual Benefit Annual Benefit, Gradient Maintenance & Alt. A Alt. B $250,000 $460,000 $13,000 S26,000 92,000 $103,000 $1,250 S2,100 $16,000 S18,000 Costs ANALYSIS: Page 3 of 4