Determine the incremental rate of return for machine

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The cash flows for two process alternatives, Machine A and Machine B, over a 15-year analysis period are shown below. Both machines require a refurbishing in the eighth year and the results in an increase in the annual benefit.

a. Determine the incremental rate of return for Machine B over Machine A.

b. Based on after taxes MARR = 15%, 50% taxes rate, and straight-line depreciation method (salvage values are $20,000 for Machine A and $40,000 for Machine B), determine EUAC of each alternative and state your recommendation.

Reference no: EM131071691

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