Machine 1: Initial cost = $250,000 Life Span= 12 years Salvage value = $30,000. After 6...

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Machine 1: Initial cost = $250,000 Life Span= 12 years Salvage value = $30,000. After 6 years, $60,000 in maintenance is required in addition to annual O&M costs of $9,000 each year (starting at the beginning of the project). The machine produces widgets with a value of $105,000 per year. Machine 2: Initial cost = $175,000 Life Span = 8 years Salvage value = $20,000. After 4 years, $15,000 in maintenance is required in addition to annual O&M costs of $10,000 each year (starting at the beginning of the project). The machine produces widgets with a value of $90,000 per year. Determine the most cost effective solution for your client in today's value (net present worth). DRAW Machine 1: Initial cost = $250,000 Life Span= 12 years Salvage value = $30,000. After 6 years, $60,000 in maintenance is required in addition to annual O&M costs of $9,000 each year (starting at the beginning of the project). The machine produces widgets with a value of $105,000 per year. Machine 2: Initial cost = $175,000 Life Span = 8 years Salvage value = $20,000. After 4 years, $15,000 in maintenance is required in addition to annual O&M costs of $10,000 each year (starting at the beginning of the project). The machine produces widgets with a value of $90,000 per year. Determine the most cost effective solution for your client in today's value (net present worth). DRAW

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