Question: 2. Mando is considering two different packaging machines for its plant in Opelika. Both machines are expected to have a useful life of 4 years.

 2. Mando is considering two different packaging machines for its plantin Opelika. Both machines are expected to have a useful life of4 years. The relevant information about the two machines are listed below

2. Mando is considering two different packaging machines for its plant in Opelika. Both machines are expected to have a useful life of 4 years. The relevant information about the two machines are listed below (note that the annual cost and the annual benefit occur identically at the end of each of the 4 years of life). Mando uses a MARR of 13% Machine A Machine B First Cost 11000 8000 Annual Maintenance Cost 3000 2500 Annual Benefit 6000 7000 Salvage Value 1500 0 a. What do you recommend to Mando? (You have to select one - use Present Worth Analysis) (15 points) b. Find the project balance of Machine B for each of the four years of the project life. (15 points) Extra Credit Estimate the IRR of the incremental project (A-B) to between three consecutive integers. (The IRR is less than 9%) (10 points)

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