Question
The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ 40,000
The machines shown below are under consideration for an improvement to an automated candy bar wrapping process.
| Machine C | Machine D |
First cost, $ | 40,000 | 75,000 |
Annual cost, $/year | 15,000 | 10,000 |
Salvage value, $ | 12,000 | 25,000 |
Life, years | 3 | 6 |
(Source: Blank and Tarquin)
Based on the data provided and using an interest rate of 5% per year, the Capital Recovery CRof Machine D is closest to:
(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)
CRd = -$11,101
CRd = -$18,452
CRd = -$24,776
CRd = -$14,777
Based on the data provided and using an interest rate of 5% per year, the Annual Worth AW of Machine D is closest to:
(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)
AWd = -$220,630
AWd = -$29,611
AWd = -$21,101
AWd = -$12,071
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