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Please show hand writen work! 4) Great Lakes Manufacturing Co. is attempting to determine the best-sized milling machine for their production floor. Five alternative sizes
Please show hand writen work!
4) Great Lakes Manufacturing Co. is attempting to determine the best-sized milling machine for their production floor. Five alternative sizes are available as shown in the table below. Great Lakes has a budget of $250,000, and a MARR = 15%. Which size machine should they purchase? Assume that n = 100 years and that the salvage value is zero for each machine. Size Economy Regular Super Delux Super Delux Annual Revenue $5,000 25,000 36,000 45,000 50,000 Initial Cost $50,000 100,000 200,000 220,000 300,000 10% 25% 18% 20.45% 16.67% Step by Step Solution
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