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Acme Semiconductor is expanding its facility and needs to add equipment. There are three process...

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Accounting

Acme Semiconductor is expanding its facility and needs to add equipment. There are three process tools under consideration. You have been asked to perform an economic analysis to select the most appropriate tool to acquire. You have gathered the following information for evaluation. Each of these tools has a useful life of seven years. Acme's accounting staff has established a company-wide MARR of 9% per year. Which one of the process tools should be selected?

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Investment costs Annual expenses Annual revenue Market value IRR Tool A Tool B Tool C $54,000 $46,000 $80,000 $6,000 $8,550 $3,000 $18,000 $16,750 $20,400 $18,000 $3,700 $23,000 16.5% 7.3% 15.4

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