Consider the two machines shown in the table below. a) Which of the machines is...
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Consider the two machines shown in the table below. a) Which of the machines is the best economic choice? (2 points) Explain your answer in terms of the machines annual worth. (3 points) b) What type of analysis is used in this table, AW, PW, or FW? (2 points) Explain your answer in terms of the information given in the table above. (3 points) c) Refer to the blue text box in the table above. The NPV function in this table, i.e., NPV($B1,B5:B8)+B4, calculates which parameter in the Excel function argument? (2 points) Explain your answer (3 points)
Consider the two machines shown in the table below. a) Which of the machines is the best economic choice? (2 points) Explain your answer in terms of the machine's annual worth. (3 points) b) What type of analysis is used in this table, AW, PW, or FW? (2 points) Explain your answer in terms of the information given in the table above. ( 3 points) c) Refer to the blue text box in the table above. The NPV function in this table, i.e., NPV(\$B1,B5:B8)+B4, calculates which parameter in the Excel function argument? ( 2 points) Explain your answer (3 points)
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