A manufacturing firm is evaluating three automated machines. The estimated production rate and cost data for each machine are given below. The MARR is 15% per year.

Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on fixed and variable costs. Determine which selection is preferable based on AW. State your assumptions.

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8 Investment cost Production rate $50,000 $75,000 $60,000 20,000 30,000 25,000 (per year) Selling price (S/unit) Variable costs (S/unit) $5 $4.5 53 $1.5 $20,000 $30,000 $40,000 $25,000 $25,000 $25,000 54 $2 Annual expenses Market value Useful life (years) 8