. On Page 12 of C1_R4, for Tomato Peeling Machine A vs. B, present worth comparison

a. Draw the Cash Flow Diagrams for Machine A and Machine B useful life (including salvage value)

b. What does a MARR of 12% mean?

c. Calculate using Excel the Present Worth / Cost of Machine A can you simplify the calculation illustrated on page 14 of C1_R4? Say why or why not.

d. Calculate using Excel the Present Worth / Cost of Machine B

e. Which machine would you purchase?

Present cost of B 31,000 31,000 31,00031,000 31.00 311000 31,000 31,00031,000 31,000, 19,000 3,000 11 12 3 4 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 63,000 63,000 A-31,000-9,000 i- MARR-12% P63 -63000+(31,000-9,000) (PIA,12%,6) 19,000 (PIF,12%,6) n-6 12 Pet Pe (PIF,12%,6) F-19,000 12 $55,846