Question: Machine A is expected to cost $30,000. The salvage value is zero. Machine A has a 6 years lifetime. The CFBT is estimated to

Machine A is expected to cost $30,000. The salvage value is zero.

Machine A is expected to cost $30,000. The salvage value is zero. Machine A has a 6 years lifetime. The CFBT is estimated to be $20,000. Machine B is expected to cost $20,000 with a $10,000 salvage value, and a lifetime of 3 years, and a CBFT of $30,000. Using a tax rate of 35% and an MARR value (after tax) equal to 8%. (a) (b) (c) Find the net present worth (NPW) for Machine A and Machine B using the SL Depreciation method. Find the net annual worth (NAW) for Machine A and Machine B using the SL. Depreciation method. Based on your results, which machine should be chosen?

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