Dave Metal is examining two options – Machine A and Machine B -
for a core-cutting machine. Machine A Initial Cost $ 250,000
Savings $28,000/year Maintenance Cost $10,000/year + $0.05/unit
Labor $0.25/widget Life 10 years Salvage Value $22,500. Machine B
Initial Cost $ 180,000 Savings $22,000/year Maintenance Cost
$20,000 /year Labor $0.50/widget Life 5 years Salvage Value $
17,000. MARR is 12 percent and the company’s sale projection is
30,000 widgets/year. Should either, both or neither machine be
purchased? Use...