nomic estimates for each are shown in the accompanying table.
Don't use excel or any tables, compute by a conventional method. Completely solve to fill in Blank 1, Blank 2, and Blank 3. Box the final answers.
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A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table.
The MARR is 15% per year.
Which alternative is preferred based on the:
(a) coterminated assumption with a ten-year study period and an imputed market value for Alternative b? Use FW method.
FW (E1) = $_____?
FW (E2) = $_____?
The best alternative is E_____?
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