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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 41%, and an after-tax MARR of g%. Capital investment Life Terminal BV (and MV) Annual receipts Annual expenses Machine A $16,000 13 years $4,500 143,000 129,000 Machine B $29,000 7 years S1,500 8186,000 8160,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. Calculate the AW value for the Machine A. AWA(996) $ (Round to the nearest dollar.)
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