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QUESTION 3 10 points For the below Me alternatives, which machine should be selected based on the PW analysis. MARR=10% First
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Answer #1

PW of a machine = -First cost - annual cost for n years discounted at MARR + salvage value discounted for n years

Present worth of Machine A: —28, 822 9. 821 110 9. 821 1.102 9. 21 4000 + 1.108 11B

Present worth of Machine A: -50,240.1142

Present worth of Machine B: —30,000 - 6. 000 110 6.000 1.102 6. 000 1.106 6. 000 1.1 6. 000 1.105 6. 000 5000 + 1.106 1.106

Present worth of Machine B: -53,309.19456

Present worth of Machine C: —10.000 4. 000 1.10 4. 000 1000 + 1.102 1.102

Present worth of Machine C: -16,115.7024

Machine C should be selected because it has the highest present worth of all 3 machines.


answered by: ANURANJAN SARSAM
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Answer #2

PW of a machine = -First cost - annual cost for n years discounted at MARR + salvage value discounted for n years

Present worth of Machine A: —28, 822 9. 821 110 9. 821 1.102 9. 21 4000 + 1.108 11B

Present worth of Machine A: -50,240.1142

Present worth of Machine B: —30,000 - 6. 000 110 6.000 1.102 6. 000 1.106 6. 000 1.1 6. 000 1.105 6. 000 5000 + 1.106 1.106

Present worth of Machine B: -53,309.19456

Present worth of Machine C: —10.000 4. 000 1.10 4. 000 1000 + 1.102 1.102

Present worth of Machine C: -16,115.7024

Machine C should be selected because it has the highest present worth of all 3 machines.

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