Question
In: Finance
Two alternative machines, A and B, as being considered as replacements for an older, worn-out machine....
Two alternative machines, A and B, as being considered as replacements for an older, worn-out machine. The cash flows for the two mutually exclusive alternatives are presented in the following table; the MARR is 12%. Select the best alternative using the NPV criterion.
End of Year Machine A Machine B
0 -$20,000 -$28,000
1 $ 4,864 $8,419
2 $ 4,864 $8,419
3 $ 4,864 $8,419
4 $ 4,864 $8,419
5 $ 4,864 $8,419
6 $ 4,500 $8,419
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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