Answer to Question #77224 in Engineering for Gommy

Question #77224
1. Purchasing a new boiler machine will cost 90000 and acquiring this machine can lessen the current electricity consumption by as much as twenty percent. The estimated annual maintenance cost for a new boiler machine is 5% of its price. Current annual electricity bill is 180000. If there will be no salvage value at the end of 6 years and Company A sets MARR = 12% per year, would it be worthwhile to invest in this new machine? (Draw the cash flow diagram)
Expert's answer
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