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4. Any one of five machines can be used in a certain phase of a canning operation. The costs of the machines are shown below and all are expected to have a 10-year life. If the company's minimum attractive rate of return is 16% per year, determine which machine should be selected on the basis of rate of return. 1 2 3 First Cost 30,000 33,000 32,000 Annual Cost 20,000 18,000 19,000 4 50,000 13,000 5 40,000 14,000

4. Any one of five machines can be used in a certain phase of a canning operation. The costs of the machines are shown below and all are expected to have a 10-year life. If the company's minimum attractive rate of return is 16% per year, determine which machine should be selected on the basis of rate of return. 1 2 3 First Cost 30,000 33,000 32,000 Annual Cost 20,000 18,000 19,000 4 50,000 13,000 5 40,000 14,000

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. Any one of five machines can be used in a certain phase of a canning operation. The costs of the machines are shown below and all are expected to have a 10-year life. If the company's minimum attractive rate of return is 16% per year, determine which machine should be selected on the basis of rate of return. 1 2 3 First Cost 30,000 33,000 32,000 Annual Cost 20,000 18,000 19,000 4 50,000 13,000 5 40,000 14,000
Transcribed Image Text:4. Any one of five machines can be used in a certain phase of a canning operation. The costs of the machines are shown below and all are expected to have a 10-year life. If the company's minimum attractive rate of return is 16% per year, determine which machine should be selected on the basis of rate of return. 1 2 3 First Cost 30,000 33,000 32,000 Annual Cost 20,000 18,000 19,000 4 50,000 13,000 5 40,000 14,000
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