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The following costs are associated with three tomato-peeling machines being considered for use in a food canning plant. Machine A Machine B Machine C First
The following costs are associated with three tomato-peeling machines being considered for use in a food canning plant. Machine A Machine B Machine C
First cost $52,000.00 $63,000.00 $67,000.00
Maintenance & Operating Costs 15,000.00 9,000.00 12,000.00
Annual benefits 38,000.00 31,000.00 37,000.00
Salvage Value 13,000.00 19,000.00 22,000.00
Useful life in Years 4 6 12
If the canning company uses a MARR of 12% which is the best alternative? USE NPW to make your decision Note: Consider the least common multiple as the study period.
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