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In: Civil Engineering

The machines shown below are under consideration for an improvement to an automated candy bar wrapping...

The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Determine which machine should be selected on the basis of an Annual Worth Analysis using an interest rate of 8% per year. (50 points)

Machine C

Machine D

First cost, $

–40,000

–65,000

Annual cost, $/year

–10,000

–12,000

Salvage value, $

12,000

25,000

Life, years

3

6

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