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PROBLEM The Creative Incubator of Mayagez, a space for artists, is planning to purchase a 3D printer for its R&D operations. The options considered and
PROBLEM The Creative Incubator of Mayagez, a space for artists, is planning to purchase a 3D printer for its R&D operations. The options considered and the expected cash flows for each machine are shown below. 3D - Printer A $90,000 8,000 3D - Printer B $50,000 12,000 3D - Printer C $75,000 9,000 First cost Annual Maintenance & Operating costs Annual increase starting in year 2 Annual benefits Salvage value Useful life, in years 40,000 10,000 20,000 3,000 3 250 30,000 7,000 6 If the Incubator uses a MARR of 10%, which option is preferred? Show your analysis using the present worth method. Please show your cashflow diagrams and solved equations using functional notation. Comment on your results
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