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A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Alternative A $14,000 $14,000 $8,000 Alternative B $65,000 $9,000 $13,000 Initial Investment Annual Cost Market Value at End of Useful Life Useful Life 5 years 20 years a) Which machine would be selected on the basis of repeatability assumption? b) Using co-terminated assumption with a 5 year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? Using Repeatability: AWA=$Blank 1 and AWB=$Blank 2 Using Co-terminated: AWA=$Blank 3 and AWB-$Blank 4 Capitalized Cost: CCA=$Blank 5 and CCB=$Blank 6 te: For Equivalent Worth, round off your final answer to whole number. For Rate of Return, round off to two decimal places (in percentage).

A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Alternative A $14,000 $14,000 $8,000 Alternative B $65,000 $9,000 $13,000 Initial Investment Annual Cost Market Value at End of Useful Life Useful Life 5 years 20 years a) Which machine would be selected on the basis of repeatability assumption? b) Using co-terminated assumption with a 5 year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? Using Repeatability: AWA=$Blank 1 and AWB=$Blank 2 Using Co-terminated: AWA=$Blank 3 and AWB-$Blank 4 Capitalized Cost: CCA=$Blank 5 and CCB=$Blank 6 te: For Equivalent Worth, round off your final answer to whole number. For Rate of Return, round off to two decimal places (in percentage).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer manually please . I need step by step huhuhu. Thank you

a) Using Repeatability: AWA=$______ and AWB=$________ (annual worth)

b) Using Co-terminated: AWA=$_________and AWB=________   (annual worth)

c) Capitalized Cost: CCA=$_______ and CCB=$__________

A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Initial Investment Annual Cost Market Value at End of Useful Life Useful Life Alternative A $14,000 $14,000 $8,000 Alternative B $65,000 $9,000 $13,000 5 years 20 years a) Which machine would be selected on the basis of repeatability assumption? b) Using co-terminated assumption with a 5 year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? a) Using Repeatability: AWA=$Blank 1 and AWB=$Blank 2 b) Using Co-terminated: AWA=$Blank 3 and AWB-$Blank 4 c) Capitalized Cost: CCA=$Blank 5 and CCB=$Blank 6 Note: For Equivalent Worth, round off your final answer to whole number. For Rate of Return, round off to two decimal places (in percentage).
Transcribed Image Text:A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Initial Investment Annual Cost Market Value at End of Useful Life Useful Life Alternative A $14,000 $14,000 $8,000 Alternative B $65,000 $9,000 $13,000 5 years 20 years a) Which machine would be selected on the basis of repeatability assumption? b) Using co-terminated assumption with a 5 year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? a) Using Repeatability: AWA=$Blank 1 and AWB=$Blank 2 b) Using Co-terminated: AWA=$Blank 3 and AWB-$Blank 4 c) Capitalized Cost: CCA=$Blank 5 and CCB=$Blank 6 Note: For Equivalent Worth, round off your final answer to whole number. For Rate of Return, round off to two decimal places (in percentage).
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