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please show work, if you're not 100% sure you're correct, DONT ANSWER Problem 2 The TT Racing and Performance Motor Corporation wishes to evaluate two
please show work, if you're not 100% sure you're correct, DONT ANSWER
Problem 2 The TT Racing and Performance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups. The MARR adopted by TT Racing is 14.3 %. The two guesses for the RORs are: 14% and 15% Machine R Machine S Initial cost, $ -145000 -80,000 - 16000 -28000 Annual operating and maintenance cost, $ per year Annual revenue,S per year 51000 61,000 35,000 20,000 Salvage value, $ 10 5 Life, years a) Construct the Incremental Cash Flow Diagram b) Determine the Incremental Annual Worth cash flow equation. c) Using incremental annual worth cash flow equation for the incremental rate of return analysis, select which machine (R or S) will be the best option Step by Step Solution
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