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Please complete the following questions and ignore the rest. Prepare a capital budgeting analysis with as many tools as possible to evaluate each of the
Please complete the following questions and ignore the rest.
- Prepare a capital budgeting analysis with as many tools as possible to evaluate each of the alternatives production system. Both the semi-automatic and the fully-automatic production system have 5-year useful life.
- Jack and Mark suspect that there is a high risk that new technology will render the production equipment in the Semi-Automatic production system useless at the end of three years and may need to be replaced to continue production if this alternative is chosen. The fully-automatic production system on the other will last 5 years before needing complete replacement. Jack and Mark want you to recommend the alternative that the company should adopt if it chooses not to replace. They also will like you to make a recommendation regarding the system to adopt if they choose to replace after the suspected useful life of each alternative.
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