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Please show work! Thank you! A medical device manufacturer is considering three different methods to manufacture the device that should provide similar reliability and quality
Please show work! Thank you!
A medical device manufacturer is considering three different methods to manufacture the device that should provide similar reliability and quality of the device. Based upon the present worth analysis, which method should be selected, based upon the following cash flows and a MARR of 20% per year. What are the present values of each method? I Project A B C Initial investment, $ -400.000 -520.000 -610.000 Operating cost, -80.000 -120.000 275,000 $/year Revenue, $/year 360 000 235.000 400.000 Salvage value, $ 22,000 60.000 Life, years 2 4 8Step by Step Solution
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