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Unformatted text preview: (one must be chosen): MARR is 5%. Assume machines from previous example will be used indefinitely. Use the CW method to evaluate the projects. Chap 6 examples Machine X Machine Y Capital investment $6,000 $14,000 Annual expenses 2,500 2,400 Useful life 12 years 18 years Market value at end 2,800 Example 4 Consider the following EOY cash flows for 2 mutually exclusive alternatives (one must be chosen): MARR is 5%. Use a study period of 18 years. Chap 6 examples Machine X Machine Y Capital investment $6,000 $14,000 Annual expenses 2,500 2,400 Useful life 12 years 18 years Market value at end 2,800 Example 5 Chap 6 examples...
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 Spring '08
 Vincent,G
 Finance, Net Present Value, Capital accumulation, mutually exclusive alternatives, Useful life Market

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