Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie Creamy First Cost 16,000 39,000 Service Life 12 years 12 years Annual profit 4,900 12,600 Annual operating cost 1,200 3,820 Salvage value 2,450 5,400 A MARR which makes the two alternatives equivalent in term of PW is ____________ %

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Q: Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are…

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