Compare the following machines on the basis of their present worth. Use 12% per year. Machine A Machine B First cost 44,000 23,0000 Annual operating cost 7,000 9,000 Annual repair cost 210 350 Overhaul every 2 years 1,900 Overhaul every 5 years 2,500 Salvage value 4,000 3,000
Compare the following machines on the basis of their present worth. Use 12% per year. Machine A Machine B First cost 44,000 23,0000 Annual operating cost 7,000 9,000 Annual repair cost 210 350 Overhaul every 2 years 1,900 Overhaul every 5 years 2,500 Salvage value 4,000 3,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Compare the following machines on the basis of their present worth. Use 12% per year.

Transcribed Image Text:Compare the following machines on the basis of their present worth. Use
12% per year.
Machine A
Machine B
First cost
44,000
23,0000
Annual operating cost 7,000
9,000
Annual repair cost
210
350
Overhaul every 2 years
1,900
Overhaul every 5 years 2,500
Salvage value
4,000
3,000
Life, years
14
7
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