Question: (Chapter 6): Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to

 (Chapter 6): Acme Semiconductor is expanding its facility and needs to

(Chapter 6): Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to perform an economic analysis to select the most appropriate tool to acquire. You have gathered the following information for evaluation. Each of these tools has a useful life of seven years. Acme's accounting staff has established a company-wide MARR of 8% per year. Which one of the process tools should be selected? Make a recommendation using the PW method. Draw the cash flow diagram. (20 Points) Investment Cost Annual Expenses Annual Revenue Market Value IRR Tool A $55,000 $6,250 $$18,250 $18,000 15.9% Tool B $45,000 $8,550 $16,750 $3,750 7.9% Tool C $80,000 $3,200 $20,200 $22,000 14.6%

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