Two alternative machines will produce the same product, but one is capable of higher-quality work,...
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Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 43%, and an after-tax MARR of 12%. Capital investment Life Terminal BV (and MV) Annual receipts Annual expenses Machine A $15,000 14 years $3,000 $151,000 $146,000 Machine B $33,000 7 years $1,500 $180,000 $172,000
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