Question: Data for 3 machines are given. For the given MARR, which machine will have the highest EUAW and hence be selected for purchase? MARR 10.0%
Data for 3 machines are given. For the given MARR, which machine will have the highest EUAW and hence be selected for purchase?
| MARR | 10.0% | ||
| Year | Project J | Project K | Project L |
| 0 | $ (76,500.00) | $ (91,900.00) | $(125,500.00) |
| 1 | $ 4,950.00 | $ 29,850.00 | $ 52,950.00 |
| 2 | $ 4,950.00 | $ 29,850.00 | $ 34,950.00 |
| 3 | $ 4,950.00 | $ 23,450.00 | $ 44,950.00 |
| 4 | $ 4,950.00 | $ 22,950.00 | $ 34,950.00 |
| 5 | $ 17,950.00 | $ 22,950.00 | $ 6,950.00 |
| 6 | $ 36,950.00 | $ 18,950.00 | $ (13,900.00) |
| 7 | $ 36,950.00 | $ (37,900.00) | |
| 8 | $ 36,950.00 | $ 16,350.00 | |
| 9 | $ 36,950.00 | ||
| 10 | $ (73,900.00) |
| Possible answers: | Machine L with an EUAW of $1,755, | |
| Machine J with an EUAW of $819, | ||
| Machine K with an EUAW of $1,029, or | ||
| All 3 machines have the same EUAW of $1,926? |
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