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Time (30 minutes) The following are cash flow diagrams for two mutually exclusive alternative equipment models. Answer questions 1, 2, and 3, accordingly. 6,700 12,500
Time (30 minutes) The following are cash flow diagrams for two mutually exclusive alternative equipment models. Answer questions 1, 2, and 3, accordingly. 6,700 12,500 Model x Model Y 5,500 / year 6,900/year 500/year 1,500/year 20,000 30,000 1. What is the RR of each model? (Show detailed calculations 2. Draw a net cash flow diagram for the increment investment analysis between Models X and Y 1 2 3 4 5 3. Based on the diagram in question 2. what is the expected RR of this increment investment Which model do you recommend? Knowing that MARR is 8% (Show detailed calculations la ENG O T here to search
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