Discuss a chip manufacturing operation

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Two machines are being considered for a chip manufacturing operation. Machine X: First cost, $ = - 1,300,000; Annual M&O costs, $/year = - 7,000; Salvage Value, $ 230,000; Life, years: infinity; Machine Y: First cost, $ = - 140,000; Annual M&O costs, $/year =- 80,000; Salvage Value, $ 50,000; Life, years: 6 years. Assume the company's MARR is a real return of 10% per year and the inflation rate is 8% per year.The calculations are done in the form of AW. Based on AW calculations in future-value dollars AW for Machine Xi

Reference no: EM131712287

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