Chapter $6$

Three mutually exclusive alternatives are being considered for production equipment at a tissue paper factory. The estimated cash flows for each alternatives are given here.$($All cash flows are in thousands$)$

MARR $=6\%$

$\backslash$table$[[,$A$,$B$,$C$],[\backslash$table$[[$Capital$],[$investment$]],5,000,7,200,10,000],[$Life$,10,10,10],[$Salvage Value,$100,420,600],[$Annual revenues,$3,200,6,000,8000],[$Annual expenses,$2,100,4,000,5100]]$

Which equipment alternatives, if any, should be selected? The firm's MARR is $6\%$ per year. Use INCREMENTAL ANALYSIS$-$using PW$.$ Please state your assumptions.