Three machines are considered for a manufacturing operation. The cash flows shown black ( all in thousands )
Machine A. Machine B. Machine C.
initial cost
160. 33. 44.
Annual revenue
27. 22. 13
annual maintenance costs
6. 9. 4
salvage value
11. 8. 3
useful life ln years
infinity 3. 7
a) Draw cash flow diagram for each machine?
b) which machine is preferable on the basis of annual worths analysis i= 10%
( assume the selected alternative wi) be repeated each life cycle, in exactly the same manner)