The following table summarizes information which are associated with three new 3D Printers being considered for use in a manufacturing plant. Note that M&O stands for Maintenance & Operation Cost.
Useful Life (Years) 13 11 9
First Cost $2,780,000 $2,630,000 $2,300,000
Salvage Value $118,000 $97,000 $82,000
Annual Benefit $670,000 $650,000 $580,000
M&O $78,000 $71,000 $65,000
M&O Gradient $15,000 $12,500 $11,000
The company's interest rate (MARR) is 12%. Which 3D Printer should the company choose? Use Annual Cash Flow Analysis.