Question: You are trying to decide between two different machines on a project There are two machines under consideration. They will provide the same function, but
You are trying to decide between two different machines on a project There are two machines under consideration. They will provide the same function, but there are difference in cost, benefits, life and other details. Costs, machine prices AND salvage all go up at the rate of inflation. Costs and benefits are shown for year 1 . Benefits go up by the \% given and are different for each machine. Salvage costs are given for an 14 yr old machne A or a 7 yr old machine B TODAY. Adjust with inflation. Help your employer to determine which machine is the best choice. 5a. Create the net cash flow chart for both machines. 5b. Deterine the NPW for both machines. 5c. Determine the EUAW for both machines. 5d. Determine the NFW for both machines. Se. Determine the IRR for both machines 5f. Detemine the DELTA IRR. Sg. Which machine will you select? Show the decision table for these alternatives. 5h. Graph the NPW versus MARR chart for both machines (both curves on the same graph) You are trying to decide between two different machines on a project There are two machines under consideration. They will provide the same function, but there are difference in cost, benefits, life and other details. Costs, machine prices AND salvage all go up at the rate of inflation. Costs and benefits are shown for year 1 . Benefits go up by the \% given and are different for each machine. Salvage costs are given for an 14 yr old machne A or a 7 yr old machine B TODAY. Adjust with inflation. Help your employer to determine which machine is the best choice. 5a. Create the net cash flow chart for both machines. 5b. Deterine the NPW for both machines. 5c. Determine the EUAW for both machines. 5d. Determine the NFW for both machines. Se. Determine the IRR for both machines 5f. Detemine the DELTA IRR. Sg. Which machine will you select? Show the decision table for these alternatives. 5h. Graph the NPW versus MARR chart for both machines (both curves on the same graph)
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