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There are two equipment alternatives for a manufacturing department: model Model A and B. Investment costs, annual costs, annual savings, and useful lifetimes are given
There are two equipment alternatives for a manufacturing department: model Model A and B. Investment costs, annual costs, annual savings, and useful lifetimes are given in the table below. Your company plans to operate the manufacturing department for a long time and similar versions of each model will be available in the future with similar costs and characteristics as replacements; so, it is appropriate to compare these alternatives using AW. The preferred alternative will be based on the least costly AW with a minimum attractive rate of return (MARR) of 20%. What is the AW of the preferred alternative
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