Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected

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Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected

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Two Alternative Machines Will Produce The Same Product But One Is Capable Of Higher Quality Work Which Can Be Expected 1
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Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 21%, and an after-tax MARR of 10%. Capital investment Life Terminal BV (and MV) Annual receipts Annual expenses Machine A $17,000 14 years $4,500 $155,000 $134,000 Machine B $34,000 8 years $500 $185,000 $178,000

N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Single Payment Compound Amount Present Factor Worth Factor To Find F Given P FIP 1.1000 1.2100 1.3310 1.4641 1.6105 Discrete Compounding; i = 10% 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 To Find P Given F PIF 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 Compound Amount Factor To Find F Given A FIA 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 Uniform Series Present Worth Factor To Find P Given A PIA 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 Capital Recovery Factor To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315

Calculate the AW value for the Machine A. AWA (8%) = $ Calculate the AW value for the Machine B. AWB (8%) = $ } (Round to the nearest dollar.) (Round to the nearest dollar.) Based on the AW values, is the better alternative.
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