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Leonard, o company that manufactures explosion-proof motors, is considering two alternatives for expanding its international export copacity Option requires equipment purchases of $845,000 now and

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Leonard, o company that manufactures explosion-proof motors, is considering two alternatives for expanding its international export copacity Option requires equipment purchases of $845,000 now and $545 000 two years from now, with annual M&O costs of 570,000 in years through 10. Option 2 involves subcontracting some of the production at costs of $240,000 per year beginning now through the end of year 10. Neither option will have a significant salvage value. Use a present worth analysis to determine which option is more attractive at the company's MARR of 17% per year The present worth of option 1 is $1/0079, and that of option 2 is $15H0G Option 1 is more attractive

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