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 basi PW and apply repeatability assumption? Alternative A $75,000 $20,435 Alternative B $75,000 $16,212 Alternative C $100,000 $22,675 Initial Investment Net Annual Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years б уеars 10 years

ENGR.ECONOMIC ANALYSIS
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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
Alternative B
Alternative C
Initial Investment
$75,000
$20,435
$75,000
$16,212
$100,000
$22,675
Net Annual
Revenues
Market Value at
$15,000
$12,000
$25,000
End of Useful Life
Useful Life
5 years
б years
10 years
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 A Alternative B Alternative C Initial Investment $75,000 $20,435 $75,000 $16,212 $100,000 $22,675 Net Annual Revenues Market Value at $15,000 $12,000 $25,000 End of Useful Life Useful Life 5 years б years 10 years
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