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Question 1 of 4 Two alternative machines will produce the same product, but one is capable of higher-quality work which can be expected to return
Question 1 of 4 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: Machine 1 Machine 2 Capital Investment $40,000 $60,000 Life 5 years 5 years Terminal BV(and MV) $4,000 $6,000 Annual receipts $20,000 $27,000 Annual expenses $8,000 $10,000 a. (30 pts)Develop your Cash Flow After Tax (CFAT) Table using Straight Line Method(SLM) for depreciation and Tax rate = 30%. b. (10 points). Using the CFAT, with Net Present Worth Method & MARR = 7% per year, which machine should be used
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