The following costs are associated with three tomato-peeling machines being considered for the use in a canning plant If the canning company uses an interest rate of 12%., which is the best alternative? Use NPW to make your decision.
(Note: Consider the least common multiple as the study period.)
Machine Economy Regular Deluxe First cost $75,000 $125,000 $220,000 Maintenance costs $8,000 $13,000 $38,000 Annual benefit $28,000 $43,000 $79,000 Salvage value $3,000 $6,900 $16,000 Useful life is ten years. use incremental rate of return anlysis, which alternative should the company choose? Use a MARR of 15%