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There are two competing alternatives in your textile business. A-type Tufting Machine costs $10,000 and B-Type Tufting Machine costs $35,000. A-type Tufting Machine can result

There are two competing alternatives in your textile business. A-type Tufting Machine costs $10,000 and B-Type Tufting Machine costs $35,000. A-type Tufting Machine can result in $11,000 labour savings in the first two years and $10,000 in year three. B-type Tufting Machine can result in $20,000 labour savings in the first two years.

Assume MARR=8%. and find the difference between the net present worth of these two alternatives using infinite planning horizon with project repeatability.

Question 2 options:

a)

Between $17,176 and $18,367

b)

Between $25,176 and $26,367

c)

Between $23,176 and $24,367

d)

Between $19,176 and $20,367

e)

Between $29,176 and $30,367

f)

None of the answers are correct

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