A company is trying to decide which machine to purchase based on the following information. If they all have 15 years useful life and MARR is 10%, use incremental rate of return analysis in Excel to decide which one is the best choice. Don't forget the do nothing choice.
|
First Cost
|
Operating Cost per year
|
Annual Income per year
|
|
-50,000
|
-2500
|
4500
|
|
-45,000
|
-2000
|
4000
|
|
-40,000
|
-1800
|
3800
|
|
-65,000
|
-2400
|
6000
|