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Champion Contractors Corp Is Trying to Decide Which of Two

question 45

Essay

Champion Contractors Corp is trying to decide which of two machines to buy.The price of the machines and their respective cash flows are described below.The decision to buy is based on which of the two machines produces the largest rate of return.Given the information below which of the machines should Champion buy?
Machine A: Cost $130,000 and will produce $36,063.27 each year for 5 years
Machine B: Cost $125,000 and will produce $16,188.07 every 6 months for 5 years (10 pmts).


Definitions:

Holistic Critical Thinking

Involves analyzing and evaluating a situation or argument considering all its interconnected and complex components.

Scoring Rubric

A set of criteria and standards used for assessing performance, work, or behavior.

Critical Thinking

The process of logically analyzing and evaluating information or arguments to form a judgment or conclusion.

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