Question: solve asap Times New Rom . 12 B A AaBbCc] AaBbCCA AaBbl AaBbC AaBbC 1 Caption Emphasis T Heading 1 1 Heading 2 1 Headin
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Times New Rom . 12 B A AaBbCc] AaBbCCA AaBbl AaBbC AaBbC 1 Caption Emphasis T Heading 1 1 Heading 2 1 Headin Font Paragraph Styles Question 2: (30 marks) Score: A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 18%. Machine A Machine B Investment cost $100,000 $55,000 Net annual revenues $22,675 $17,879 Market value at end of useful life $25,000 $12,000 Useful life 10 years 5 years IRR 19.7% 22.5% Which of the two machines, if any, do you recommend by using: 1. PW method. (8 points) 2. IRR method. (10 points) 3. Coterminated assumption with a study period of 7 years. (12 points) Activate Wind Go to Settings to an Bows= 100 English (U.S.) W ere to search
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