Three machines have been selected for comparison by a manufacturing company. Their data is tabulated below. The company is using an investment MARR of 20%.
Using Equivalent Uniform Annual Worth method of analysis, determine the Incremental Rate of Return for the machine, which should be selected.
Show work, not spreadsheet.
Machine A, B , C
Cost $260,000 $130,000 $185,000
O&M/yr $18,000 $80,000 $45,000
Revenue/yr $150,000 $150,000 $150,000
Salvage $105,000 $35,000 $56,000
Life 4 4 4