for th below two machines and based on AW analysis which machine we should select? MARR=10%.
Machine A | Machine B | |
First cost, $ | 28,321 | 100,000 |
Annual cost, $/year | 11,988 | 7,000 |
Salvage value, $ | 5,755 | - |
Life, years | 3 | infinite |
Answer the below question:
A- the AW for machine A=
Machine A | Machine B | |
First cost, $ | 26,419 | 148,773 |
Annual cost, $/year | 10,229 | 7,141 |
Salvage value, $ | 4,000 | - |
Life, years | 3 | infinite |
Answer the below question:
B- the AW for machine B=
C- Based on the AW value you got in the previous 2 questions, which machine we should select? type you explanation
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