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Need Help With mainly Part C Question 4[18] Machine A costs $8500 and has annual operating cost of $500 with the salvage value of $500
Need Help With mainly Part C
Question 4[18] Machine A costs $8500 and has annual operating cost of $500 with the salvage value of $500 at the end of 10 years of useful life. The annual revenue earned by machine A is $1500 Machine B costs $7000 and has annual operating cost of $550 with the salvage value of $300 at the end of 10 years of useful life. The annual revenue earned by machine B is $1800 Which machine will you choose based on (a)Present worth analysis (b) Annual worth analysis (c) Internal rate of return method at minimum attractive rate of return (MARR) of 12%. You must start with the cash flow diagram. (Note: Here MARR is same as annual compounding interest rate)Step by Step Solution
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