Question: 6 - A job can be done with Machine A that costs 5 7 $ 1 2 , 5 0 0 and has annual end
A job can be done with Machine A that costs $ and has annual endofyear maintenance costs of $; its salvage value after years is $ Or the job can be done with Machine B which costs $ and has endofyear maintenance costs of $ and a salvage value of $ at the end of years. These investments can be repeated in the future, and your work is expected to continue indefinitely. Use present worth, annual worth, and capitalized cost to compare the machines. The interest rate is year. Contributed by D P Loucks, Cornell University
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