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. Machine A Machine B First Cost $45,000 $24,000 Annual Operating Cost $31,000 $35,000 Salvage Value $10,000 $8,000 Useful life 8 years 5 years 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 Note: Show final answer to the nearest WHOLE NUMBER. No need to write the Unit of Measure. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer
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. Machine A Machine B First Cost $45,000 $24,000 Annual Operating Cost $31,000 $35,000 Salvage Value $10,000 $8,000 Useful life 8 years 5 years 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 Note: Show final answer to the nearest WHOLE NUMBER. No need to write the Unit of Measure. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer
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 rate of return (MARR) of 10%, which machine should be chosen?
Use co-terminated assumption (5 years) and compare using Present Worth Method.
Machine A
Machine B
First Cost
$45,000
$24,000
Annual Operating Cost
$31,000
$35,000
Salvage Value
$10,000
$8,000
Useful life
8 years
5 years
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
Note: Show final answer to the nearest WHOLE NUMBER. No need to write the Unit of Measure.
Blank 1
Add your answer
Blank 2
Add your answer
Blank 3
Add your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba1c21ff-bd8f-48cf-abf3-d3f34072ee89%2F2f3efb57-7ca1-4db1-a685-596eb04f6953%2Fyg4n9ks_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Machine A
Machine B
First Cost
$45,000
$24,000
Annual Operating Cost
$31,000
$35,000
Salvage Value
$10,000
$8,000
Useful life
8 years
5 years
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
Note: Show final answer to the nearest WHOLE NUMBER. No need to write the Unit of Measure.
Blank 1
Add your answer
Blank 2
Add your answer
Blank 3
Add your answer
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