The company makes tasty seafood dumplings and is considering two alternatives to automate its production process....

The company makes tasty seafood dumplings and is considering two alternatives to automate its production process. The data is included below:

	A	B
Initial COst	$42.500	$70,000
Annual costs O&M	$6,000	$4,000
Annual savings	$18,500	$20,000
Residual value	$12,000	$25,000
Useful life	3 year	6 year

Recommend the alternative that you consider the most attractive for this company. Do the analysis using the net present value and annual equivalent value techniques. Show the details of your analysis.

Expert Solution

ekkarill92 answered 1 year ago

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