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Five. Your company is looking at purchasing a front-end loader and has narrowed the choice down to two loaders. Loader 1 costs $100,000 with a
Five. Your company is looking at purchasing a front-end loader and has narrowed the choice down to two loaders. Loader 1 costs $100,000 with a useful life of three years with a salvage value of $30,000 at the end of the third year. Loader 2 costs $30,000 with a useful life of two years with a salvage value of $5,000 at the end of the second year. The annual profit for either one is $35,000. Using a MARR of 10%, which alternative should your company buy? Use the FW and least common multiple method to support your decision.
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