Acme Tools has four alternatives for an injection molding machine (A, B, C, D) as shown below. MARR is 20%. Use incremental cash flow analysis to determine the economically optimal system. Solve this problem in Excel, copy and paste the Excel model below, and provide an interpretation. A B C D Capital Investment $295,000 $350,000 $310,000 $340,000 Net Annual Revenue $75,000 $90,000 $75,000 $85,000 Residual Value $60,000 $82,000 $96,000 $85,000 Study Period 6 Years 6 Years 6 Years 6 Years

ENGR.ECONOMIC ANALYSIS
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Acme Tools has four alternatives for an injection molding machine (A, B, C, D) as shown below. MARR is
20%. Use incremental cash flow analysis to determine the economically optimal system. Solve this
problem in Excel, copy and paste the Excel model below, and provide an interpretation.
A
B
C
D
Capital Investment
$295,000
$350,000
$310,000 $340,000
Net Annual Revenue
$75,000
$90,000
$75,000 $85,000
Residual Value
$60,000
$82,000
$96,000
$85,000
Study Period
6 Years
6 Years
6 Years
6 Years
Transcribed Image Text:Acme Tools has four alternatives for an injection molding machine (A, B, C, D) as shown below. MARR is 20%. Use incremental cash flow analysis to determine the economically optimal system. Solve this problem in Excel, copy and paste the Excel model below, and provide an interpretation. A B C D Capital Investment $295,000 $350,000 $310,000 $340,000 Net Annual Revenue $75,000 $90,000 $75,000 $85,000 Residual Value $60,000 $82,000 $96,000 $85,000 Study Period 6 Years 6 Years 6 Years 6 Years
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