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office in Ontario is considering buying a 3-D printing machine. The office is choosing hetween two 3-D printing inachines that use Fused Deposition Modeling (FDM)

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office in Ontario is considering buying a 3-D printing machine. The office is choosing hetween two 3-D printing inachines that use Fused Deposition Modeling (FDM) technology. The office has a MARR (Minimum Acceptable Rate of Return) of 7%. The salvage value for both machines at the end of their service lives is expected to he $400. Use the information in the table below to answer the following questions Price Running cost per year Maintenance cost Machine A S6,400 $1,200 $600 for the first year, increasing by S100/year thereafter 6 years Machine B $4,400 $1,400 $400 for the first year, increasing by $140/year thereafter 4 years Lie a) State the necessary assumption to compare mutually exclusive alternatives of different lives. (4 Marls) b) Which alternative is more economic based on Annual Worth comparison? (6 Marks) c) Which alternative is more economic hased on Present Worth comparison? (6 Marks) d) For a four-year study period, what salvage value for machine A would take it the preferred choice? (6 Marks) e) Do both methods (Present Worth and Annual Worth) always yield to the same decision

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