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2. An engineer at BullyDawg, Inc. is responsible for preparing a cost analysis on two potential pieces of equipment. One of the pieces of equipment is manufactured by Pacific America and has an expected life of 10 years. The other alternative is produced by the Allied Company and is expected to last for 5 years. The calculations for the equipment from Pacific America have already been calculated, and showed a NPW of $132,800 (based on the given lifespan and an MARR of 7%). Given the data below and Present worth Analysis, perform the appropriate calculations for the equipment from the Allied Company. Which, if any, of the two alternatives should the BullyDawg, Inc. choose? MARR-7%. ($157,274) Initial Cost Benefits O&M Costs Life (in years) Allied Company $150,000 $50,000 in years 1 and 2: $75,000 in ears 3, 4, and 5 $5,000 per year
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