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Wondertech plans to build an automated food sealing machine to increase their efficiency. Referring to Table Q1, it proposes two (2) different brand sealing machines

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Wondertech plans to build an automated food sealing machine to increase their efficiency. Referring to Table Q1, it proposes two (2) different brand sealing machines with the same output capacity, i.e. 120,000 total units per year and $0.375 per unit selling price. At the end of their 7 years of useful life, both machines have different estimated rejection rates and no market values. By analysing the data in Table Q1, -- I Table Q1 Comparison data for Machine A and B Machine A Machine B Capital investment ($) 27,400 44,900 Annual expenses ($) 26,520 19.840 Insurance ($) 614 1023 Estimated reject rate (%) 1.7 5.4 i) Determine which sealing machine should be chosen at MARR 11% if the present worth analysis is used as basis? Calculate an equivalent annual worth by using the relationship AW = = PW(A/P, i%, n). If the estimated reject rate is ignored, predict which machine should be selected if the future worth analysis is used as basis. Give your reflections on the machine selection in questions a) and c). iii) iv)

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