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

(Source: Blank and Tarquin)

9.) Machine C and Machine D are two mutually exclusive alternatives.

Which machine should be selected on the basis of the Annual Worth Analysis?

(Review the criteria to select mutually exclusive alternatives based on Annual Worth Analysis)

1. Recommend Machine C with AW_C= $15,096
2. Recommend Machine C with AW_C= $22,433
3. Recommend Machine D with AW_D= $19,683
4. Recommend Machine D with AW_D= $24,683

10.) If Machine C and Machine D were independent projects, the correct selection based on the Annual Worth calculated for each machine would be:

(Review criteria to select independent projects based on the Annual Worth Analysis)

1. Install Machine C
2. Install Machine D
3. Install both, Machine C and Machine D
4. Select the Do Nothing alternative