7. Two machines are considered for purchase. Assume 10% interest, Use Benefit Cost analysis. Machine X Machine Y Initial Cost $200 $700 Uniform annual benefit $95 $120 Salvage value $50 $150 Useful life in years 6 12 a. Which machine should be bought? b. List the decision guideline for single project c. List the selection rule for incremental analysis
7. Two machines are considered for purchase. Assume 10% interest, Use Benefit Cost analysis. Machine X Machine Y Initial Cost $200 $700 Uniform annual benefit $95 $120 Salvage value $50 $150 Useful life in years 6 12 a. Which machine should be bought? b. List the decision guideline for single project c. List the selection rule for incremental analysis
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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7. Two machines are considered for purchase. Assume 10% interest, Use Benefit Cost analysis. Machine X Machine Y Initial Cost $200 $700 Uniform annual benefit $95 $120 Salvage value $50 $150 Useful life in years 6 12
a. Which machine should be bought?
b. List the decision guideline for single project
c. List the selection rule for incremental analysis
d. List the procedures for the incremental analysis.
Solve all this question......you will not solve all questions then I will give you down?? upvote.....
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