Answer Happy

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 27%, and an after-tax MARR of 12%. Capital investment Life Calculate the AW value for the Machine A. AWA (12%) = $ (Round to the nearest dollar.) Machine A $16,000 II 14 years Terminal BV (and MV) Annual receipts Annual expenses Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. $4,500 Machine B $148,000 $139,000 $35,000 8 years $1.500 $194,000 $166,000

N 1 2 3 5 6 7 9 10 11 12 13 14 15 Single Payment Compound Amount Present Factor To Find F Given P FIP 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 Discrete Compounding; i = 12% 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 Worth Factor To Find P Given F PIF 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 Compound Amount Factor To Find F Given A FIA 14.7757 17.5487 1.0000 2.1200 3.3744 4.7793 3.0373 6.3528 3.6048 8.1152 4.1114 10.0890 12.2997 20.6546 24.1331 28.0291 Uniform Series 32.3926 37.2797 Present Worth Factor To Find P Given A PIA 0.8929 1.6901 2.4018 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 Sinking Fund Factor To Find A Given F AIF 1.0000 0.4717 0.2963 0.2092 0.1574 0.1232 0.0991 0.0813 0.0677 0.0570 0.0484 0.0414 0.0357 0.0309 0.0268 Capital Recovery Factor To Find A Given P A/P 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468