Question: A factory is comparing two final offers (A & B) to choose from. The initial price of the offer A is $ 8,000,000 with an
A factory is comparing two final offers (A & B) to choose from. The initial price of the offer A is $ 8,000,000 with an expected annual maintenance of $105,000 and a salvage value of $ 450,000 after the 6 years life time of the project. On the other hand, the initial price of the offer B is $ 3,200,000 with an expected annual maintenance of $ 130,000 and a salvage value of $ 300,000 after the 4 years life time of the project. The MARR of the factory is 18% per year. Calculate the present worth the factory has to pay for offer B using the LCM technique. a. 5-6,049,252 $-60,492.52 O. $-6,049.252 Oc. d. $6,049.252 QUESTION 3 According to your previous analysis, which offer should be bought? a. Offer A offer A and offer
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