Question: Confused on the annual worth for machine A ! Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation.

Confused on the annual worth for machine A Confused on the annual worth for machine A ! Required information Problem

! Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 9% per year and that the inflation rate is 6.4% per year. A B Machine First Cost, $ -148,000 -760,000 -70,000 -5,000 M&O, $ per year Salvage Value, $ 40,000 200,000 Life, years 5 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual worth of the selected alternative? Select machine A The annual worth of the alternative is $ ! Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 9% per year and that the inflation rate is 6.4% per year. A B Machine First Cost, $ -148,000 -760,000 -70,000 -5,000 M&O, $ per year Salvage Value, $ 40,000 200,000 Life, years 5 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual worth of the selected alternative? Select machine A The annual worth of the alternative is $

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