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A company with a MARR of 15% must install one of two production machines that provide equivalent service (same benefits)

Business Dec 09, 2021

A company with a MARR of 15% must install one of two production machines that provide equivalent service (same benefits). Machine X has an initial cost of $40,000 with an annual operating and maintenance (O&M) cost of $30,000 and a salvage value of $5,000 after its 5-year life. Machine Y has an initial cost of $60,000 with an annual operating and maintenance (O&M) cost of $20,000 and a salvage value of $12,000 after its 5-year life. Which choice below gives the correct PW (costs) equations for both machines? X: PW (costs) = $40k + $30K (P/A,15%,5) - $5k (P/F,15%,5) Y: PW (costs) = $60k + $20K (P/A,15%,5) - $12K (P/F,15%,5) = X: PW (costs) = $40k - $30k (P/A, 15%,5) + $5k (P/F,15%.5) Y: PW (costs) = $60k - $20K (P/A, 15%,5) + $12K (P/F,15%.5) X: PW (costs) = $40k - $30k (P/A,15%,5) - $5k (P/F,15%,5) Y: PW (costs) = $60k - $20K (P/A,15%,5) - $12K (P/F,15%,5) = O X: PW (costs) = $40k + $30K (P/A, 15%,5) + $5k (P/F.15%,5) Y: PW (costs) = $60k + $20k (P/A, 15%.5) + $12k (P/F.15%,5)

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