Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ R -261,000 -40,000 4 21,100 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $- The better alternative is [machine R -325,500 -50,000 5 18,900 1, and the annual worth of machine S is $-1

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune-
ups.
Machine
First cost, $
Annual operating cost, $ per year
Life, years
Salvage value, $
R
8
-261,000
-40,000
14
21,100
Use the AW method at 9% per year to select the better alternative.
The annual worth of machine R is $-[
The better alternative is machine R
-325,500
-50,000
5
18,900
and the annual worth of machine S is $-
Transcribed Image Text:Required information The TT Racing and Performance Motor Corporation wish to evaluate two alternative machines for NASCAR motor tune- ups. Machine First cost, $ Annual operating cost, $ per year Life, years Salvage value, $ R 8 -261,000 -40,000 14 21,100 Use the AW method at 9% per year to select the better alternative. The annual worth of machine R is $-[ The better alternative is machine R -325,500 -50,000 5 18,900 and the annual worth of machine S is $-
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