Question: Answer complete with full steps to get 100% feedback!! If you are the economic analyst, which alternative would you recommend among the three when interest
Answer complete with full steps to get 100% feedback!!
If you are the economic analyst, which alternative would you recommend among the three when interest rate is 15% per year.
Use present worth analysis technique only.
| Machine | Initial Cost | Annual Operating Cost | Annual Benefit | Salvage Value | Expected life (years) |
| A | 35000 | 8000 | 22000 | 12000 | 2 |
| B | 75000 | 12000 | 40000 | 16000 | 4 |
| C | 70000 | 13000 | 39000 | 14000 | 8 |
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