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Titan manufactures and sells gas-powered electricity generators. It can purchas companies: A or B. The AOC and annual savings estimates are available, but the analysis
Titan manufactures and sells gas-powered electricity generators. It can purchas companies: A or B. The AOC and annual savings estimates are available, but the analysis at MARR = 10% per year to determine if the selection between A and B as 40% from the best estimates, and if so, at what percentage in the estimate? A B Company First cost, $ -46,000 -37,500 AOC, $ per year -7,500 -8,000 Savings best estimate, $ per year 15,000 13,000 Salvage value, $ 5,000 3,700 Life, years 5 5 (Click to select) the selection between A and B (Click to select) when the e- ity generators. It can purchase a new line of fuel injectors from either of two stimates are available, but the savings estimate is unreliable at this time. Use a selection between A and B changes when the estimated savings varies as m percentage in the estimate? Use tabulated factors. B -37,500 -2,000 13,000 3,700 5 (Click to select) when the estimated savings is (Click to select)
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