?The alternatives shown below on the basis of their capitalized costs using an interest rate of 10% per year. Which machine should be selected Machine B Machine A 100,00- First cost, SR Annual Operation Cost, SR/ year 800,000- 12.000- 70,000- Salvage value, SR Life (years) 1,000,000 8000 5 Machines A and B Machine A Machine B None

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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?The alternatives shown below on the basis of their capitalized costs using an interest rate of 10% per year. Which machine should be selected
Machine B Machine A
::::::::::: ::::
800,000-
100,00-
First cost, SR
12,000-
70,000-
1,000,000
t----- ::::::::
00
Annual Operation Cost, SR/ year:
Salvage value, SR
Life (years)
8000
Machines A and B
Machine A
Machine B
None
Transcribed Image Text:?The alternatives shown below on the basis of their capitalized costs using an interest rate of 10% per year. Which machine should be selected Machine B Machine A ::::::::::: :::: 800,000- 100,00- First cost, SR 12,000- 70,000- 1,000,000 t----- :::::::: 00 Annual Operation Cost, SR/ year: Salvage value, SR Life (years) 8000 Machines A and B Machine A Machine B None
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