Empire Limited is trying to decide between two machines which are necessary in their manufacturing facility. Data concerning the two machines are presented below. If the company has a minimum attractive rate of return (MARR) of 10%, which machine should be chosen? Use co-terminated assumption (5 years) and compare using Present Worth Method. Note: Show final answer to the nearest WHOLE NUMBER Answer the following: a. The Present Worth of Alternative A is = $ Blank 1 b. The Present Worth of Alternative B is = $ Blank 2 c. Choose Alternative (Type only A or B) = Blank 3
Empire Limited is trying to decide between two machines which are necessary in their manufacturing facility. Data concerning the two machines are presented below. If the company has a minimum attractive rate of return (MARR) of 10%, which machine should be chosen? Use co-terminated assumption (5 years) and compare using Present Worth Method. Note: Show final answer to the nearest WHOLE NUMBER Answer the following: a. The Present Worth of Alternative A is = $ Blank 1 b. The Present Worth of Alternative B is = $ Blank 2 c. Choose Alternative (Type only A or B) = Blank 3
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Empire Limited is trying to decide between two machines which are necessary in their manufacturing facility. Data concerning the two machines are presented below. If the company has a minimum attractive
Use co-terminated assumption (5 years) and compare using Present Worth Method.
Note: Show final answer to the nearest WHOLE NUMBER
Answer the following:
a. The Present Worth of Alternative A is = $ Blank 1
b. The Present Worth of Alternative B is = $ Blank 2
c. Choose Alternative (Type only A or B) = Blank 3

Transcribed Image Text:First Cost
Annual Operating Cost
Salvage Value
Useful life
Machine A
$45,000
$31,000
$10,000
8 years
Machine B
$24,000
$35,000
$8,000
5 years
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