5-70 The following costs are associated with three tomato-peeling machines being considered for use in a canning plant. If the canning company uses an interest rate of 12%, which is the best alternative? Use NPW to make your decision. (Note: Consider the least common multiple as the study period.) Machine A B с $52,000 $63,000 $67,000 15,000 9,000 12,000 38,000 31,000 37,000 13,000 19,000 22,000 12 First cost O & M costs Annual benefit Salvage value Useful life (yrs) 4 6

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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5-70 The following costs are associated with three tomato-peeling machines being considered for
use in a canning plant. If the canning company uses an interest rate of 12%, which is the best
alternative? Use NPW to make your decision. (Note: Consider the least common multiple as the
study period.)
Machine
A
B
C
$52,000 $63,000 $67,000
15,000 9,000 12,000
38,000 31,000 37,000
13,000 19,000
22,000
12
First cost
O & M costs
Annual benefit
Salvage value
Useful life (yrs) 4
6
Transcribed Image Text:5-70 The following costs are associated with three tomato-peeling machines being considered for use in a canning plant. If the canning company uses an interest rate of 12%, which is the best alternative? Use NPW to make your decision. (Note: Consider the least common multiple as the study period.) Machine A B C $52,000 $63,000 $67,000 15,000 9,000 12,000 38,000 31,000 37,000 13,000 19,000 22,000 12 First cost O & M costs Annual benefit Salvage value Useful life (yrs) 4 6
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