Question: Help for C? Problem 2 (30 points) A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual
Help for C?
Problem 2 (30 points) A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 23% per year. The two guesses for the RORs are: 20% and 25% Initial cost, $ Annual operating and maintenance cost, $ per year Machine VS -340000 -70000 Machine DS -500,000 |-64000 Annual revenue, $ per year Salvage value, $ Life, years 180000 38,000 190,000 40,000 10 a) Generate Incremental Cash Flow Estimates Table b) Construct the Incremental Cash Flow Diagram c) Determine the Incremental Present Worth cash flow equation. Problem 2 (30 points) A company that manufactures amplified pressure transducers wishes to decide between the machines shown-variable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and determine which should be selected if the MARR = 23% per year. The two guesses for the RORs are: 20% and 25% Initial cost, $ Annual operating and maintenance cost, $ per year Machine VS -340000 -70000 Machine DS -500,000 |-64000 Annual revenue, $ per year Salvage value, $ Life, years 180000 38,000 190,000 40,000 10 a) Generate Incremental Cash Flow Estimates Table b) Construct the Incremental Cash Flow Diagram c) Determine the Incremental Present Worth cash flow equation
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