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You have been asked to analyze the potential purchase of a robotic arm for manufacturing cars. There are two models to choose from. Model A

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You have been asked to analyze the potential purchase of a robotic arm for manufacturing cars. There are two models to choose from. Model A costs $55,000 for a useful life of 4 years and salvage value of $25,000. Model B costs $87,000 with a 6-year life and salvage value of $20,000. Interest is 7% for both. What choice using the annual worth analysis should the company choose and why

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