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Question 3. (20 points) You are planning to purchase new manufacturing equipment and narrowed the alternatives down to three with the cash flows stated below.
Question 3. (20 points) You are planning to purchase new manufacturing equipment and narrowed the alternatives down to three with the cash flows stated below. Which alternative would you choose and why? Use the AW version of the conventional B/C method to identify the preferred option. Make sure you explain your precise steps. MARR= Life= 15% 10 A 260000 20000 B 350000 25000 385000 30000 Investment Salvage Annual Revenues Annual Costs 160000 184000 180000 100000 107000 94000 Question 3. (20 points) You are planning to purchase new manufacturing equipment and narrowed the alternatives down to three with the cash flows stated below. Which alternative would you choose and why? Use the AW version of the conventional B/C method to identify the preferred option. Make sure you explain your precise steps. MARR= Life= 15% 10 A 260000 20000 B 350000 25000 385000 30000 Investment Salvage Annual Revenues Annual Costs 160000 184000 180000 100000 107000 94000
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