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The PW-based relation for the incremental cash flow series to find Ai* between the lower first-cost alternative X and alternative Y has been developed. 0

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The PW-based relation for the incremental cash flow series to find Ai* between the lower first-cost alternative X and alternative Y has been developed. 0 = -24,000 + 9000(P/A,Ai * ,10) + (-3000(P/F,Ai * ,10)) Determine the highest MARR value for which Y is preferred over X. Any MARR value greater than 0 % favors Y. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine First Cost, $ AOC, $ per year Salvage Value, $ Life, Years -12,000 -1,000 5,000 -25,000 -400 6,000 a) The incremental cash flow between machines B and A in year O is $ 13000 b) The incremental cash flow between machines B and A in year 3 is $ 1400 c) The incremental cash flow between machines B and A in year 6 is $ 2600

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