The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ R IS -283,000 -300,500 Annual operating cost, $ per year -40,000 -50,000 5 5 Salvage value, $ 21,200 16,700 Life, years Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is (Click to select) and the annual worth of machine S is $-

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune-
ups.
Machine
First cost, $
R
IS
-283,000
-300,500
Annual operating cost, $ per year
-40,000
-50,000
5
5
Salvage value, $
21,200
16,700
Life, years
Use the AW method at 9% per year to select the better alternative.
The annual worth of machine R is $-
The better alternative is (Click to select)
and the annual worth of machine S is $-
Transcribed Image Text:The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ R IS -283,000 -300,500 Annual operating cost, $ per year -40,000 -50,000 5 5 Salvage value, $ 21,200 16,700 Life, years Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is (Click to select) and the annual worth of machine S is $-
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