Two types of machine tools are available for performing a particular task in a manufacturing firm. The
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The effective income tax rate is 40%. Make a comparison after income tax for both machines, using a 10% MARR.
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Machine A Machine B First cost Operating cost $40,000 $4,000 $50,000 $2,000 per year Service life Salvage value Depreciation method 6 years $5,000 MACRS (GDS) 5 years 8 years $3,000 MACRS (GDS) 5 years Recovery period
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Assume repeatability and compare AW over useful life Design A Design B Select Design A to ...View the full answer
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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