Q1) An engineer is considering the 4 machines below for laboratory railway track testing. Using present worth analysis, which machine should be selected? MARR is 8% per year.
Estimates Machine A Machine B Machine C Machine D
Initial cost, $ -144,000 -130,000 -155,000 -94,000
AOC, $/year -10,000 -11,100 -15,000 -1,000
Salvage value, $ 2,500 0 5,000 4,400
Life, years 3 6 3 6