Question

a. [15 marks] Determine which machine should be selected if the repeatability assumption holds (If you student ID number is even, use the PW method. Otherwise, use the FW method).

b. [15 marks] Determine which machine should be selected if the repeatability assumption does not hold and a study period of 8 years is used. Assume that the equivalent worth for any machine, having a useful life less than 8 years, at the end of its own life will be reinvested at the MARR for the remainder of the study period (If you student ID number is even, use the PW method. Otherwise, use the FW method).

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