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Q7: SOLVE AW for both Machines and show work Problem 7-41 (algorithmic) Question Help Two alternative machines will produce the same product, but one is
Q7: SOLVE AW for both Machines and show work
Problem 7-41 (algorithmic) Question Help Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better altemative, assuming repeatability and using SL depreciation, an income-tax rate of 37%, and an after-tax MARR of 11%. Capital investment Life Terminal BV (and Mv) Annual receipts Annual expenses Machine A $17,000 12 years $3,000 $156,000 $134,000 Machine B $28,000 7 years $500 $180,000 $165,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year Calculate the AW value for the Machine A. AWA (11%)-$| | (Round to the nearest dollar)Step by Step Solution
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