rded Old Southwest Canning Co. has determined that any one of four sterilizing machines can be used in its chili-canning operation. The costs of the machines are estimated; all machines have a 5-year useful life. If the MARR is 25% per year, determine which machine should be selected on the basis of the rate of return (ROR) analysis. Machine 11 2 3 4 Select machine 3 First Cost, $ -28,100 -51,000 -32,000 -33,000 x Annual Operating Cost (AOC), $ -20,000 -12,000 -19,000 18,000

rded Old Southwest Canning Co. has determined that any one of four sterilizing machines can be used in its chili-canning operation. The costs of the machines are estimated; all machines have a 5-year useful life. If the MARR is 25% per year, determine which machine should be selected on the basis of the rate of return (ROR) analysis. Machine 11 2 3 4 Select machine 3 First Cost, $ -28,100 -51,000 -32,000 -33,000 x Annual Operating Cost (AOC), $ -20,000 -12,000 -19,000 18,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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