Question: The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Determine which should be selected on the
The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Determine which should be selected on the basis of an annual worth analysis using an interest rate of 15% per year. Construct the cash flow diagrams. Machine C Machine D First cost, $ -40,000 -65,000 Annual cost, $ per year -10,000 -12,000 Overhaul in year 4, $ -2,000 Salvage value, S 12,000 25,000 Life, years 3 6
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