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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

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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 6.5 %. The two guesses for the RORs are: 6% and 7% Machine R -145000 16000 Machine S -80,000 28000 nitial cost, S Annual operating and maintenance cost, S per year Annual revenue,S per year Salvage value,S Life, years 51000 61,000 35,000 20,000 10 Skip the Do-Nothing and proced straight to comparing the two option a) Generate Incremental Cash Flow Estimates Table b) Construct the Incremental Cash Flow Diagram c) Determine the Incremental Annual Worth cash flow equation

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