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Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following
Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 24%, and an after-tax MARR of 9%. Capital investment Life Calculate the AW value for the Machine A. AWA (9%) = $(Round to the nearest dollar.) Machine A $15,000 14 years $3,000 $153,000 $136,000 Machine B $29,000 7 years $1,000 Terminal BV (and MV) Annual receipts Annual expenses Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. $193,000 $177,000
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