Kevin Millers Ltd is examining a 750 -ton hydraulic press and 600-tonne molding press for purchase. The company has a budget for one of them. If the company MARR is 12% and the relevant information is below which press should the company purchase. Use the annual worth comparison method. Hydraulic Press $275,000 $33,000 $2000, increasing 15% each year thereafter 15 years $19,250 Molding Press $185,000 $24,500 $1000, increasing by $350 each year thereafter. 10 years $14,800 Initial cost Annual savings Annual maintenance cost Life Salvage value

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Kevin Millers Ltd is examining a 750 -ton hydraulic press and 600-tonne molding press for
purchase. The company has a budget for one of them. If the company MARR is 12% and the
relevant information is below which press should the company purchase. Use the annual worth
comparison method.
Hydraulic Press
$275,000
$33,000
$2000, increasing 15% each
year thereafter
15 years
Molding Press
$185,000
$24,500
$1000, increasing by $350
each year thereafter.
Initial cost
Annual savings
Annual maintenance cost
Life
10 years
Salvage value
$19,250
$14,800
Transcribed Image Text:Kevin Millers Ltd is examining a 750 -ton hydraulic press and 600-tonne molding press for purchase. The company has a budget for one of them. If the company MARR is 12% and the relevant information is below which press should the company purchase. Use the annual worth comparison method. Hydraulic Press $275,000 $33,000 $2000, increasing 15% each year thereafter 15 years Molding Press $185,000 $24,500 $1000, increasing by $350 each year thereafter. Initial cost Annual savings Annual maintenance cost Life 10 years Salvage value $19,250 $14,800
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