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Hewett Electronics manufactures implied pressure transducers. It must decide bet

ID: 1195447 • Letter: H

Question

Hewett Electronics manufactures implied pressure transducers. It must decide between two machines for a Finishing operation. First cost of variable speed machine is S270.000. annual operating cost for each year is $-133000. and salvage value atyear 6 is $75.000.For dual speed machine, the first cost is $245,000 . annual operating cost for each year is $-135000. and salvage value at year 6 is $35,000. Find the incremental rate and select one for them on the basis of AW-based rate of return analysis. The company s MARR is 18% per year. (Similar to Question 8.24)" 15% SELECT DUAL 25% SELECT VARIABLE 24% SELECT VARIABLE 9% SELECT DUAL

Explanation / Answer

Hewett Electronics manufactures implied pressure transducers. It must decide bet