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Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 11%
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 11% per year and that the inflation rate is 4% per year. Machine A -151,000 -820,000 First Cost, $ M&O, $ per year -70,000 -5,000 Salvage Value, $ Life, years 200,000 40,000 5 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual worth of the selected alternative? S machine A The annual worth of the alternative is $5090.2
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