QZY, Inc. is evaluating new widget machines offered by three companies. The machines have the following characteristics:
|
A |
B |
C |
| First cost |
$15,000 |
$25,000 |
$20,000 |
| Maintenance and operating |
1,600 |
400 |
900 |
| Annual benefit |
8,000 |
13,000 |
9,000 |
| Salvage Value |
3,000 |
6,000 |
4,500 |
| Useful life in years |
4 |
4 |
4 |
a) Construct a choice table for interest rates from 0% to100%b) MARR = 15% From which company, if any should you buy the widget machine? Use rate of return analisys.