7. Two machines are considered for purchase. Assume 10% interest, Use Benefit Cost analysis. Machine X Machine Y Initial Cost $200 $700 Uniform annual benefit $95 $120 Salvage value $50 $150 Useful life in years 6 12 a. Which machine should be bought? b. List the decision guideline for single project c. List the selection rule for incremental analysis

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7. Two machines are considered for purchase. Assume 10% interest, Use Benefit Cost analysis. Machine X Machine Y Initial Cost $200 $700 Uniform annual benefit $95 $120 Salvage value $50 $150 Useful life in years 6 12

a. Which machine should be bought?

b. List the decision guideline for single project

c. List the selection rule for incremental analysis

d. List the procedures for the incremental analysis.

 

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