A tire company will purchase a new tire balancing equipment. The machine will cost $12,699 with an annual savings of $1,500, a salvage value of $250 at the end of 12 years and the MARR of 6%. Use B/C analysis to determine whether or not the equipment should be purchased. B/C=?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A tire company will purchase a new tire balancing equipment. The machine will cost $12,699 with an annual savings of $1,500, a salvage value of $250 at the end of 12 years and the MARR of 6%.

Use B/C analysis to determine whether or not the equipment should be purchased.

B/C=?

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