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Please view the following video before answering this question. Video Example 9 . 6 A granary has two options for a conveyor used in the

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Please view the following video before answering this question. Video Example 9.6
A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $80,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $90,000 with $2,000 salvage value after 16 years. Operation and maintenance for each is expected to be $21,000 and $15,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes.
Click here to access the TVM Factor Table Calculator
Click here to access the MACRS-GDS table.
Parta
Determine which alternative is less costly, based upon comparison of after-tax annual worth.
Show the AW values used to make your decision:
Alternative 1
Alternative 2
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +-10.
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