Question: 3. The data for new and used machines are shown below: Used machine New machine Initial cost(s) 40,000 15,000 Annual operating cost (Syear)8,000 2,000 10,000

3. The data for new and used machines are shown below: Used machine New machine Initial cost(s) 40,000 15,000 Annual operating cost (Syear)8,000 2,000 10,000 Salvage value (S) 5,000 Life (years) To compare the machines on the basis of a present worth analysis, calculate the present worth of the machines at an interest rate of 6% per year. Which machine you will pick? Why

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