Homework Answers
Annual Equivalent Cost=(Installation Cost-Salvage Value)*MARR/(1-1/(1+MARR)^time)+Annual O&M costs+Annual income taxes
Machine A=(4300000-62000)*16%/(1-1/(1+16%)^20)+91000+48000=853810.8832
Machine B=(20000000-44000)*16%/(1-1/(1+16%)^10)+105000+36000=4269918.014
Select Machine A
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