The following costs are associated with three tomato peeling machines being considered for use in a canning plant. If the canning company uses an interest rate of 12%. Which is the best alternative? Use the net present worth to make your decision
Machine A - First cost is $52000, Maintenance and operating costs $15000, Annual benefits $38000, Salvage value $13000, useful life 4 years
Machine B - First cost $63000, Maintenance and operating costs $9000, Annual benefits $31000, Salvage value $19000, useful life 6 years
Machine C - First cost $67000, Maintenance & operating costs $12000, Annual Benefits $37000, Salvage Value $22000, useful life 12 years