Question: 2. Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to perform

2. Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to perform an economic analysis to select the most appropriate tool to acquire. You have gathered the following information for evaluation. Each of these tools has a useful life of seven years. Acme's accounting staff has established a companywide MARR of 88 per year. Assume that there is an external interest rate = 6% available to the company. Which one of the process tools should be selected (if any)? (30 points) Tool A Investment costs $ 55,000 Annual expenses $6,250 Tool B $ 45,000 $8,550 Tool C $ 80,000 Annual revenue $18,250 $ 16,750 $3,200 $20,200 Market value $18,000 $3,750 $ 22,000 ERR 11.62% 7.07% 10.87%

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