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A Dentist Is Deciding Between Two X- Ray Machines for His

Question 13

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A dentist is deciding between two X- ray machines for his new office. Estimated costs for each machine are given below.  Machine  A  B  Installed cost $50,000$52,000 Annual maintenance $1500$1200 cost  Market value at year 10$5750$6250 Life, years 1010\begin{array} { | l | l | l | } \hline \text { Machine } & \text { A } & \text { B } \\\hline \text { Installed cost } & \$ 50,000 & \$ 52,000 \\\hline \text { Annual maintenance } & \$ 1500 & \$ 1200 \\\text { cost } & & \\\hline \text { Market value at year } 10 & \$ 5750 & \$ 6250 \\\hline \text { Life, years } & 10 & 10 \\\hline\end{array} Which machine should be recommended based on the annual worth method and an actual- dollar analysis? Use an inflation- free MARR of 14%, an inflation rate of 6.5% per year, and a study period of 10 years.

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AW(A) = - $13,793.57...

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