A national company plan to purchase new machine. Two manufactures offered the estimates below. Manufacture A -15,000 3,500 1000 First Cost, S Annual M&O cost $ per year Salvage Value S Life, years Manufacture B 18,000 3,100 2000 Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per y O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395 O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222 O Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383 O None of the given answers O Manufacture A should be selected on the basis of a present worth comparison with PW--$45,036
A national company plan to purchase new machine. Two manufactures offered the estimates below. Manufacture A -15,000 3,500 1000 First Cost, S Annual M&O cost $ per year Salvage Value S Life, years Manufacture B 18,000 3,100 2000 Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per y O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395 O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222 O Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383 O None of the given answers O Manufacture A should be selected on the basis of a present worth comparison with PW--$45,036
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 1
A national company plan to purchase new machine. Two manufactures offered the estimates below:
Manufacture A
Manufacture B
-18,000
-15,000
-3,500
3,100
1000
First Cost, S
Annual M&O cost $ per year
Salvage Value $
Life, years
2000
Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per year.
O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395
O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222
Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383
None of the given answers
O Manufacture A should be selected on the basis of a present worth comparison with PW=-$45,036](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0b26efa-7b88-4fd2-b243-7a1d8dad53b9%2F40c0e116-c266-4b14-b02b-0a7c2890fa4d%2Fmp12b34_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
A national company plan to purchase new machine. Two manufactures offered the estimates below:
Manufacture A
Manufacture B
-18,000
-15,000
-3,500
3,100
1000
First Cost, S
Annual M&O cost $ per year
Salvage Value $
Life, years
2000
Determine which manufacture should be selected on the basis of a Present Worth comparison if the MARR is 15% per year.
O Manufacture B should be selected on the basis of a present worth comparison with PW=-$40,395
O Manufacture A should be selected on the basis of a present worth comparison with PW= $44,222
Manufacture B should be selected on the basis of a present worth comparison with PW=-$41.383
None of the given answers
O Manufacture A should be selected on the basis of a present worth comparison with PW=-$45,036
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