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Hannifin CNG Fuel Dispensers needs to purchase replacement equipment to streamline one of its production lines for a new contract but may sell the equipment
Hannifin CNG Fuel Dispensers needs to purchase replacement equipment to streamline one of its production lines for a new contract but may sell the equipment before its expected life is reached at an estimated market value for used equipment.At MARR = 17% per year, select the better option using a future worth analysis over (a) the expected usage period, and (b) the maximum life, when the salvage values are expected to be 50% of the market values for used equipment. Are the selections the same for both plans?
Table : Alternatife option
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