Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is thebetter alternative, assuming repeatability and using SL depreciation, an income-tax rate of 30%, and an after-tax MARR of 10%.Calculate the AW value for the Machine A.Capital investmentLifeTerminal BV (and MV)Annual receiptsAnnual expensesClick the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year.AWA (10%) = $ (Round to the nearest dollar.)Machine A$22,00011 years$5,000$152,000$141,000(...)Machine B$32,0008 years$500$190,000$173,000

The discounted annual worth is a financial metric used in capital budgeting and financial analysis…

Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 30%, and an after-tax MARR of 10%. Capital investment. Life Machine A $22,000 11 years $5,000 $152,000 $141,000 Terminal BV (and MV) Annual receipts Annual expenses Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Machine B $32,000 8 years $500 $190,000 $173,000

Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 30%, and an after-tax MARR of 10%. Capital investment. Life Machine A $22,000 11 years $5,000 $152,000 $141,000 Terminal BV (and MV) Annual receipts Annual expenses Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Machine B $32,000 8 years $500 $190,000 $173,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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