Question: Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 8 years and no salvage value.

Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 8 years and no salvage value. Polisher 1 requires an initial investment of $20,000 and provides annual benefits of $4,300. Polisher 2 requires an initial investment of $10,000 and provides annual benefits of $1,700. Polisher 3 requires an initial investment of $15,000 and provides annual benefits of $3,400. MARR is 12%/year.

What is the future worth of each polisher?

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