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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:

Machine A

Machine B

Capital investment

$16,000

$29,000

Life

12 years

8 years

Terminal BV (and MV)

$5,000

$1,500

Annual receipts

$145,000

$186,000

Annual expenses

$140,000

$166,000

Determine which is the better alternative, assuming repeatability and using SL depreciation, an income tax rate of 40%, and after-tax MARR of 9%.

Please Find Annual Worth, of Machine A and B as well

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