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Two machines listed below for producing an engine part. Assuming repeatability, which one has the greatest annual worth AW (= least equivalent uniform annual cost
Two machines listed below for producing an engine part. Assuming repeatability, which one has the greatest annual worth AW (= least equivalent uniform annual cost EUAC)? Salvage value is received at the end of a machine's useful life. MARR = 8%. Machine 1 Initial Cost $25,000 Annual O&M Cost $6,000 Salvage Value $5,000 Useful Life 7 years Machine 2 $20,000 $8,000 $3,000 5 years
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