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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
30%,
and an after-tax MARR of
11%.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Calculate the AW value for the Machine A. AWA(11%)=$(Roundtothenearestdollar.) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Calculate the AW value for the Machine A. AWA(11%)=$(Roundtothenearestdollar.)Step by Step Solution
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