Two alternative machines will produce the same product, but one is capable of higher - quality work. which can be expected to return greater revenue. The following are relevant data. Determine which is the better alternative assuming repeatability and using SL depreciation, an income-tax rate of 40%. and an after tax MARR of 8%.
Machine A Machine B
Capital investment $21,000 $29,000
Life 14 years 6 years
Terminal BV(and MV) $3,500 $1,000
Annual receipts $145,000 $178,000
Annual expenses $134,000 $168,000
Calculate the AW value for the Machine A.