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The cash flow of the two machines is given below. Which machine should be selected based on annual worth analysis at i=11%. Assume a mutually
The cash flow of the two machines is given below. Which machine should be selected based on annual worth analysis at i=11%. Assume a mutually exclusive scenario. Alternatives First cost, $ Annual operating cost. $/year Salvage value, 5 Life, years Machine A -3,000 -200 1000 3 Machine B -4.000 -250 750 4 O Machine A with AW of - $1,130 O Machine B with AW of $1.130 O Machine A with AW of -5930 O Machine B with AW of 5-1.380
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