A national company plan to purchase new machine. Two manufactures offered the estimates below: Manufacture A -15,000 Manufacture B First Cost, $ Annual M&O cost,S per year -18,000 -3,100 3,500 1000 Salvage Value,S Life, years | 2000 6. 9. Determine which manufacture should be selected on the basis of a present worth comparison if the MARR is 11% per year. O Manufacture B should be selected on the basis of a present worth comparison with PW- -$43,385 O Manufacture A should be selected on the basis of a present worth comparison with PW -$53,290 O Manufacture B should be selected on the basis of a present worth comparison with PW- -$47,824 O None of the given answers O Manufacture A should be selected on the basis of a present worth comparison with PW -$52,075

A national company plan to purchase new machine. Two manufactures offered the estimates below: Manufacture A -15,000 Manufacture B First Cost, $ Annual M&O cost,S per year -18,000 -3,100 3,500 1000 Salvage Value,S Life, years | 2000 6. 9. Determine which manufacture should be selected on the basis of a present worth comparison if the MARR is 11% per year. O Manufacture B should be selected on the basis of a present worth comparison with PW- -$43,385 O Manufacture A should be selected on the basis of a present worth comparison with PW -$53,290 O Manufacture B should be selected on the basis of a present worth comparison with PW- -$47,824 O None of the given answers O Manufacture A should be selected on the basis of a present worth comparison with PW -$52,075

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 7P

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