Engineering Economy class

Qb/2

Problem A2, at Arun Tech Inc. The following costs and useful life data are associated with two new machines being considered Data Useful Life, Years First Cost Salvage Value Annual Benefit Annual Benefit, Gradient S1,250$2,100 M&O Alt. A Alt. B 19 $250,000 $460,000 $13,000 $26,000 $92,000 $103,000 $16,000 $18,000 The company interest rate (MARR) is 12%. Recommend which machine should be purchased. ANALYSIS