Question: Reconsider Problem 56. Determine which oven should be purchased based on an incremental annual worth analysis. Data from problem 56 Octavia Bakery is planning to

Reconsider Problem 56. Determine which oven should be purchased based on an incremental annual worth analysis.

Data from problem 56

Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 8 percent/year.

Initial Investment Model 127B $50,000 Model 334A Estimated Life End of Life

Initial Investment Model 127B $50,000 Model 334A Estimated Life End of Life Salvage Annual Income Annual Expense $80,000 10 5 $10,000 $0 $19,400 $26,000 $10,000 $6,000

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