13. Kruber company located Tennessee considering two different makes of a blow molding machine for one of its automotive products. The cost data for the two alternatives are provided in table below. MARR=12%. Find best alternative using ROR method. Machine X Machine Y Initial cost $150K $275K Annual operating cost 55K 60K Benefits/Year 100K 120K Salvage value 20K 40K Life 10 Years

13. Kruber company located Tennessee considering two different makes of a blow molding machine for one of its automotive products. The cost data for the two alternatives are provided in table below. MARR=12%. Find best alternative using ROR method. Machine X Machine Y Initial cost $150K $275K Annual operating cost 55K 60K Benefits/Year 100K 120K Salvage value 20K 40K Life 10 Years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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