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 B $75,000 Alternative C $100,000 $2,675 Alternative A Initial Investment $75,000 $20,435 Net Annual $16,212 Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years 6 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 B $75,000 Alternative C $100,000 $2,675 Alternative A Initial Investment $75,000 $20,435 Net Annual $16,212 Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years 6 years 10 years
Question
Transcribed Image Text: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 B
$75,000
Alternative C
$100,000
$2,675
Alternative A
Initial Investment
$75,000
$20,435
Net Annual
$16,212
Revenues
Market Value at
$15,000
$12,000
$25,000
End of Useful Life
Useful Life
5 years
6 years
10 years
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