Do a Present Worth Analysis to be able to determine the Alternative chosen from the three Generators with MARR = 13%?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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a company is considering the purchase of a new Lathe, where there are 3 alternative Lathes with brands D, E and F with economic value for each Lathe as follows;

  Lathe Machine D Lathe Machine E Lathe Machine F
Initial Cost (Million Rp) 530 540 480
Maintenance Cost (Million
Rp)
90 80 100
Residual Value (Million Rp) 60 130 80
Operating Life 10 10 10

 

Question: Do a Present Worth Analysis to be able to determine the Alternative chosen from the three Generators with MARR = 13%?

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