Automatic soldering machine to meet increased demand


Allied Electrons must purchase a new automatic soldering machine to meet increased demand for its electronic goods. Of all the machines considered, management has narrowed the choices to the following three mutually exclusive machines. Allied uses a planning horizon of four years (all three can last this long) and a MARR of 10%. The initial cost is at (year 0) and the payments are in years 1-4. Determine the present worth, future worth, and annual worth for when a) the salvage value is in year 4, and b) the salvage value is in year 5.

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Accounting Basics: Automatic soldering machine to meet increased demand
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