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Chapter 7 Problem 030 and 031 (GO Tutorial) Your answer is partially correct. Try again....

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Chapter 7 Problem 030 and 031 (GO Tutorial) Your answer is partially correct. Try again. DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $ 7,600, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $ 220 regardless of the number of gumdrops produced. MARR is 6% year and 30 million gumdrops are produced each year. a. What is the annual worth of each alternative? Machine 7745 Aw= $ -1256.18 827 Machine A37Y Aw= $ b. What is the decision rule for determining the preferred machine based on annual worth ranking? Select the project with the highest Aw c. Which machine should be recommended? Machine 7745 d. Now determine which machine should be recommended based on an incremental annual worth analysis. Machine 7745 (Round your answer to the nearest whole dollar. Tolerance is +/-1.00)

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