Question: Your company will replace an obsolete machine press. You have two bids, summarized below, to consider. Your company uses an after-tax MARR of 12%, Straight-Line

Your company will replace an obsolete machine press. You have two bids, summarized below, to consider. Your company uses an after-tax MARR of 12%, Straight-Line depreciation with an income tax rate of50%. Select the most economical alternative using after-tax analysis.

Your company will replace an obsolete machine press. You have two bids,

Machine Useful Life (years) Initial Cost Annual Operating Cost Annual Revenue Salvage Value A 5 $60,000 75,000 125,000 0 B 5 $76,000 70,000 130,000 5,000

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