Question: Question 2: Choose the correct answer and justify your answer.(10 pts) 1. A company is considering the purchase of a new tool with software to

 Question 2: Choose the correct answer and justify your answer.(10 pts)

Question 2: Choose the correct answer and justify your answer.(10 pts) 1. A company is considering the purchase of a new tool with software to improve aceuracy. The company has the oppertunity to buy an used machine for $15,000 or a new one for $21,000. Other cost 10 estimates are shown in the table below. Each machine is eypected to have a 20-year life with a salvage value at the end of its useful life. Using the Incremental analysis and present worth (PW) relatios at a MARR of 10%, which machine should be chosen? ( 5 pes) Select ' new machine' as the increment PW is equal to +4,2615 b- Select ' used machine' as the increment PW is equal to +3,4295 c. Select ' new machine' as the increment PW is equal to +1,5295 d- Select ' used machine' as the increment PW is equal to +3,1995 BONUS OUESTION ( 2 PTS): Calculate the IRR of the increment related to the above question. 3) Page

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