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Stevens Manufacturing Company is trying to decide between three systems that are necessary in its manufacturing facility. System A B C Installed Cost Annual

  

Stevens Manufacturing Company is trying to decide between three systems that are necessary in its manufacturing facility. System A B C Installed Cost Annual O&M 65,000 34,000 $ 69,000 32,000 $ 30,000 $ $ $ $ $ $ 73,000 $ Salvage Value 10,000 8,000 9,000 Assuming the system is expected to last and be used for 10 years and the company has a minimum attractive rate of retum (MARR) of 15%, which system should be purchased? Required a) Calculate the EUAC for the System A. b) Calculate the EUAC for the System B. c) Calculate the EUAC for the System C. d) Which system should be adopted? Why?

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