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undefined Question 2 10 pts The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant:
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Question 2 10 pts The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data X X-TRUD SUPR-X Useful Life, Years 5 13 7 First Cost $2,730,000 $2,320,000 $2,140,00 Salvage Value $113,000 $ 106,000 $110,000 Annual Benefit $268,000 $602,000 $712,000 M&O $66,000 $80,000 $55,000 M&O Gradient $16,000 $10,000 $11,000 The company's interest rate (MARR) is 6%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. O Choosing SUPR-X is best because it has the highest Annual Benefit O Choosing SUPR-X will maximize the EUAB-EAUC; its value is $257,497 higher than X and $-92,314 higher than X-TRUD. O Choosing SUPR-X is best because it has the lowest M&O cost in yr1 O Choosing SUPR-X will maximize the EUAB-EAUC; its value is $712,497 higher than X and $42,686 higher than X-TRUDStep by Step Solution
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