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Use FW analysis to compare between machines A and B if the MARR is 10% Machine A Machine B First Cost, $ -20,000 -30,000 Annual

Use FW analysis to compare between machines A and B if the MARR is 10%

Machine A Machine B
First Cost, $ -20,000 -30,000
Annual Cost, $ year -9000 -7000
Salvage Value, $ 4000 6000
Life 3 6

The Future Worth of machine A

The Future Worth of machine B

Which machine should be Selected

A.

$-68,960

B.

Machine B

C.

$-203,272

D.

$-101,156

E.

Machine A

F.

$-122,168

G.

$-103,245

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