Question: Compare Machine A and B below, assuming that each machine produces part with the same quality and specification. Assume MARR of 8.9% p.a. Machine A

 Compare Machine A and B below, assuming that each machine produces

Compare Machine A and B below, assuming that each machine produces part with the same quality and specification. Assume MARR of 8.9% p.a. Machine A B Initial investment $ 51000 83000 Machine life (years) 12 8 Market value at the end of the machine life ($) 7300 8600 Annual operating cost $ 1400 3300 Assume lowest common multiplier (LCM) method (if necessary) for the following questions: The present worth of Machine A is $ Leave your answer as a positive value. The present worth of Machine B is $ 6242 Leave your answer as a positive value The annual worth of Machine A is $ Leave your answer as a positive value. The annual worth of Machine B is Leave your answer as a positive value

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!