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)

6.) Based on the data provided and using an interest rate of 8% 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)

1. CR_D= $12,485
2. CR_D= $9,683
3. CR_D= $10,653
4. CR_D= $24,683

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

1. AW_D= 65,000(A/P, 8%, 7) + 25,000(A/F, 8%, 7) 15,000
2. AW_D= 65,000(A/P, 8%, 7) + 12,000(A/F, 8%, 7) 10,000
3. AW_D= 65,000(P/A, 8%, 7) + 25,000(F/A, 8%, 7) 15,000
4. AW_D= 65,000(A/P, 8%, 7) + 25,000(A/F, 8%, 7) 15,000(A/P, 8%, 7)

8.) Based on the data provided and using an interest rate of 8% 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)

1. AW_D= $20,653
2. AW_D= $19,683
3. AW_D= $24,683
4. AW_D= $30,287