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5. The data for new and used machines are shown below: Initial cost($) Annual operating cost ($/year) Salvage value (5) Life
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a) PW of new machine z - 40000 + 2000 PW of new machine 2 - 40000 - 2000 (P/A, 7%, 6) + 100vo (8/4,47,5) 2 - 40000 - 2000(4.7Amanal payment of used machine, lets, assume Y as the annual payment Then, y(1m 1,083) 2 31,912.90 11.08 27 Y = 189830.24)

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