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The TT Racing and Perfermance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups Problem. The TT Racing and Performance Motor Corporation
The TT Racing and Perfermance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups Problem. The TT Racing and Performance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups. The MARR adopted by TT Racing is 6.5 %. The two guesses for the RORs are: 6% and 7% Machine S Machine PR 145000 16000 Initial cost, S Annual operating and maintenance cost, $ per year Annual revenue,$ per year Salvage value, S Life, years 80,000 28000 51000 35,000 10 61,000 20,000 a) Construct the Incremental Cash Flow Diagram b) Determine the Incremental Annual Worth cash flow equation. c) Using incremental annual worth cash flow equation for the incremental rate of return analysis, select which machine (R or S) will be the best option
The TT Racing and Perfermance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups
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