The CROC Co. is considering a new milling machine. They have narrowed the choice
ID: 1098332 • Letter: T
Question
The CROC Co. is considering a new milling machine. They have narrowed the choices down to three alternatives in addition to the Null alternative. The relevant data are shown in the table below.Data Alternative Economy Regular Deluxe First Cost $75,000 $125,000 $220,000 Annual Benefit $28,000 $43,000 $79,000 M & O Costs $8,000 $13,000 $38,000 Salvage Value $3,000 $6,900 $16,000 All machines have a life of ten years. Using incremental rate of return analysis, which alternative should the company choose? Use a MARR of 15%. A. Regular B. Economy C. Null D. Deluxe
The CROC Co. is considering a new milling machine. They have narrowed the choices down to three alternatives in addition to the Null alternative. The relevant data are shown in the table below.
Data Alternative Economy Regular Deluxe First Cost $75,000 $125,000 $220,000 Annual Benefit $28,000 $43,000 $79,000 M & O Costs $8,000 $13,000 $38,000 Salvage Value $3,000 $6,900 $16,000 All machines have a life of ten years. Using incremental rate of return analysis, which alternative should the company choose? Use a MARR of 15%. Data Alternative Economy Regular Deluxe First Cost $75,000 $125,000 $220,000 Annual Benefit $28,000 $43,000 $79,000 M & O Costs $8,000 $13,000 $38,000 Salvage Value $3,000 $6,900 $16,000 All machines have a life of ten years. Using incremental rate of return analysis, which alternative should the company choose? Use a MARR of 15%. Regular Economy Null Deluxe The CROC Co. is considering a new milling machine. They have narrowed the choices down to three alternatives in addition to the Null alternative. The relevant data are shown in the table below.
Data Alternative Economy Regular Deluxe First Cost $75,000 $125,000 $220,000 Annual Benefit $28,000 $43,000 $79,000 M & O Costs $8,000 $13,000 $38,000 Salvage Value $3,000 $6,900 $16,000 All machines have a life of ten years. Using incremental rate of return analysis, which alternative should the company choose? Use a MARR of 15%. A. Regular B. Economy C. Null D. Deluxe