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13 Dec 2019
A company is considering purchasing a new CNC machine. The study period is 10 years and the MARR is 15% per year. There are two options being considered with the following data:
Alternatives
A B
Initial cost $100,000 $160,000
Annual Expenses $30,000 $20,000
One-time expense at the end of 5 years $20,000
Market value at the end of 10 Years $10,000 $15,000
Using the Annual Worth method, determine which alternative should be selected?
Using the Internal rate of return method, which alternative should be selected?
A company is considering purchasing a new CNC machine. The study period is 10 years and the MARR is 15% per year. There are two options being considered with the following data:
Alternatives
A B
Initial cost $100,000 $160,000
Annual Expenses $30,000 $20,000
One-time expense at the end of 5 years $20,000
Market value at the end of 10 Years $10,000 $15,000
Using the Annual Worth method, determine which alternative should be selected?
Using the Internal rate of return method, which alternative should be selected?
ketanLv1
26 Sep 2023
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Beverley SmithLv2
17 Dec 2019
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