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Problem 1. The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc Data Useful Life, Years
Problem 1. The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc Data Useful Life, Years First Cost Salvage Value Annual Benefit Annual Benefit, Gradient Maintenance & Alt. A Alt. B $250,000 $460,000 S13.000 $26,000 S92,000 $103,000 $1,250 S16,000 $18,000 $2,100 ating Costs The company interest rate (MARR) is 12%. Conduct economic analysis using either present worth or annual cash flow methods and recommend which machine should be purchased. t cash flows diagram for Alternative A and B Construc Using the present worth analysis method, determine the net present worth (NPW= PWB-PWC) of alternative A, & B, and recommend the most economical alternative. Using the equivalent uniform annual cash flow method, determine the equivalent uniform annual worth (EUAW EUAB - EUAC) of alternative A and B; and select the most economical alternative A. B. C
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