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 12%, which machine would be selected on the basis of PW and apply repeatability assumption? Alternative A $75,000 $20,435 Alternative C $100,000 $22,675 Alternative B Initial Investment $75,000 $16,212 Net Annual Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years б years 10 years

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 12%, which machine would be selected on the basis of PW and apply repeatability assumption? Alternative A $75,000 $20,435 Alternative C $100,000 $22,675 Alternative B Initial Investment $75,000 $16,212 Net Annual Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years б years 10 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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