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Suppose you need to choose one of the three available models X,Y, and Z of certain service equipment. The required operation period of the equipment
Suppose you need to choose one of the three available models X,Y, and Z of certain service equipment. The required operation period of the equipment is 3 years. Use the NAE approach to select the best alternative. Assume MARR of 10% ITEM MODEL X MODEL Y MODEL Z Initial Cost ($) 100,000 120,000 80,000 Salvage Value($) 10,000 8,000 14,000 Operating Costs per year 4,000 6,000 5,000 Useful Life (Years) 3 3 3
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