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Table below shows the cash flow data of TWO MEAs under consideration. If the minimum required interest rate is 12% per year, determine which alternative
Table below shows the cash flow data of TWO MEAs under consideration. If the minimum required interest rate is 12% per year, determine which alternative (X or Y)should be selected by performing the following equivalent-worth analysesrespectively: (a) Future-worth (FW) analysis with co-terminated assumption applied for a studyperiod of three years. (b) Present-worth (PW) analysis with repeatability assumption applied for a studyperiod of six years. (c) Annual-worth (AW) analysis with repeatability assumption applied. (d) Under repeatability assumption, perform an AW analysis on Machine X with astudy period of six years. Does it make any difference to the AW result forMachine X in part (b)(iii) above? Table below shows the cash flow data of TWO MEAs under consideration. If the minimum required interest rate is 12% per year, determine which alternative (X or Y)should be selected by performing the following equivalent-worth analysesrespectively: (a) Future-worth (FW) analysis with co-terminated assumption applied for a studyperiod of three years. (b) Present-worth (PW) analysis with repeatability assumption applied for a studyperiod of six years. (c) Annual-worth (AW) analysis with repeatability assumption applied. (d) Under repeatability assumption, perform an AW analysis on Machine X with astudy period of six years. Does it make any difference to the AW result forMachine X in part (b)(iii) above
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