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Your local brewery needs some new equipment and have narrowed it down to two choices. Each option has a useful life of 5 years with
Your local brewery needs some new equipment and have narrowed it down to two choices. Each option has a useful life of 5 years with no salvage value. Costs and benefits are shown in the table below. Use an MARR of 12%. a) Using payback period analysis which equipment would you recommend? b) Using the benefit-cost ratio which equipment would you recommend? Year A B 0 1 -$30,000 - $55,000 6000 24,000 6000 10,000 12,000 21,000 N 3 4 6000 -7000 5 5 25,564 26,610
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