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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

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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 R -145000 -16000 Machine S -80,000 -28000 Initial cost, S Annual operating and maintenance cost, S per year Annual revenue,S per year 51000 Salvage value, S Life, years 61,000 35,000 20,000 10 a) Generate Incremental Cash Flow Series Table b) Construct the Incremental Cash Flow Diagram c) Determine the Incremental Present Worth cash flow equation. d) 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

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