A company is considering two investment alternatives. Alternative A is a new machine that costs $50,000...
A company is considering two investment alternatives.
Alternative A is a new machine that costs $50,000 and will last for ten years with no salvage value. It will save the company $5479 per year and the savings will increase by $2050 each year.
Alternative B is a is a machine that will cost $75,000 and last 10 years. The salvage value at the end of 10 years is $25,000. It will save $11352 per year. Find the present worth of each alternative if the company as a MARR of 9.2%/year.
Alternative A ____$
Alternative B ____$
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