Question: MKBK Manufacturing Inc. is considering buying a CNC machine from one of the following four reconditioned machines. The company will replace the machine at the

MKBK Manufacturing Inc. is considering buying a CNC machine from one of the following four reconditioned machines. The company will replace the machine at the end of 10 years. All of them are expected to have the same salvage value of 10% of the initial cost at the end of 10 years. MARR is 10%. Which one of the alternative it should buy?
A. Machine C
B. Machine A
C. Machine B
D. Machine D
MKBK Manufacturing Inc. is considering buying a CNC machine from

Machine Initial Cost Annual Profit $20,000 $100,000 $70,000 $50,000 $5,000 $16,500 $10,000 S8,500

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Machine A has highest NPV so thats the best option B Machine Aanswer Year NPV Machine A 0 1 ... View full answer

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