Determine which of the two machines should be selected

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Determine which of the two machines should be selected, using an AW-based rate of return analysis, if the MARR is 18% per year. The semi-automatic machine has a first cost of $40,000, an operating cost of $100,000 per year, and a salvage cost $5,000 at the end of its 2 year life. The automatic machine has a first cost of $90,000, an operating cost of $95,000 per year, and a salvage value of $7,000 at the end of its 4 year life.

Reference no: EM13243834

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