Problem 6 (10 pts). Consider two alternative machines as follows: Machine A 40,000 TL 18,000 TL...
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Problem 6 (10 pts). Consider two alternative machines as follows: Machine A 40,000 TL 18,000 TL 8,000 TL Machine B 60,000 TL Initial Cost Annual Cost Salvage (Market) Value 14,000 TL 20.000 TL 6 years Life 3 years Which machine should be selected based on present worth (PW) analysis at i = 10%? a)-207921; -209684 (Select A) b)-137921; -109684 (Sel. A) c)-97,921; -99,684 (Sel. A) d)-207921; -209684 (Select B) e) -137921; -109684 (Select B) Problem 6 (10 pts). Consider two alternative machines as follows: Machine A 40,000 TL 18,000 TL 8,000 TL Machine B 60,000 TL Initial Cost Annual Cost Salvage (Market) Value 14,000 TL 20.000 TL 6 years Life 3 years Which machine should be selected based on present worth (PW) analysis at i = 10%? a)-207921; -209684 (Select A) b)-137921; -109684 (Sel. A) c)-97,921; -99,684 (Sel. A) d)-207921; -209684 (Select B) e) -137921; -109684 (Select B)
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ANSWER a Analysis period 6 yrs LCM of 3 6 NPW of A 40000 18000 PA... View the full answer
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