The machines shown below are under consideration for an improvement to an automated candy bar wrapping process.

	Machine C	Machine D
First cost, $	50,000	65,000
Annual cost, $/year	10,000	15,000
Salvage value, $	12,000	25,000
Life, years	4	7

1.) Based on the data provided and using an interest rate of 8% per year, the Capital Recovery CR of Machine C is closest to:

(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)

1. CR_C = $17,759
2. CR_C = $12,433
3. CR_C = $22,433
4. CR_C = $11,311

2.) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth AW of Machine C is:

1. AW_C= 50,000(P/A, 8%, 4) + 12,000(F/A, 8%, 4) 10,000
2. AW_C = 50,000(A/P, 8%, 4) + 25,000(A/F, 8%, 4) 15,000
3. AW_C = 50,000(A/P, 8%, 4) + 12,000(A/F, 8%, 4) 10,000(A/P, 8%, 4)
4. AW_C = 50,000(A/P, 8%, 4) + 12,000(A/F, 8%, 4) 10,000