Question: topic is engineering economics. please explain and do not use excel . The two mutually exclusive alternatives (pressing machines) are under review by a plant
The two mutually exclusive alternatives (pressing machines) are under review by a plant manager to acquire one of them. Based on the following cash flows, which machine do you recommend to be selected? The MARR is 5% per year. Machine A Machine B Capital investment $30,000 $40,000 $15,000 every three years Annual revenue $6000 per year Annual expenses $1500 per year $1500 in year 1 and it increases by 2% every year after that $2000 Market value at the end of useful life Useful life (years) 5 DO
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