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Business, 06.04.2021 01:00 catherinesquitieri
Final Finishing is considering three mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 10 years and no salvage value. Polisher 1 requires an initial investment of $20,000 and provides annual benefits of $4,465. Polisher 2 requires an initial investment of $10,000 and provides annual benefits of $1,770. Polisher 3 requires an initial investment of $15,000 and provides annual benefits of $3,580. MARR is 15 percent/year.
(a) What is the annual worth of each polisher?
(b) Which polisher should be recommended?
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Answers: 1
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Final Finishing is considering three mutually exclusive alternatives for a new polisher. Each altern...
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