ning plant. If the canning company uses an in rate of 12%, which is the best alternative? Use! to make your decision. (Note: Consider the common multiple as the study period.) Machine $52,000 $63,000 $67,0 15,000 First cost Maintenance and operating costs Annual benefit 9,000 12,0 37,0 22,0 38,000 31,000 Salvage value Useful life, in vears 13,000 19,000 12
ning plant. If the canning company uses an in rate of 12%, which is the best alternative? Use! to make your decision. (Note: Consider the common multiple as the study period.) Machine $52,000 $63,000 $67,0 15,000 First cost Maintenance and operating costs Annual benefit 9,000 12,0 37,0 22,0 38,000 31,000 Salvage value Useful life, in vears 13,000 19,000 12
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please do in excel please

Transcribed Image Text:i The following costs are associated with three tomato-
peeling machines being considered for use in a can-
ning 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
$52,000 $63.000 $67,000
9,000
First cost
Maintenance and
15,000
12,000
operating costs
Annual benefit
38,000 31,000
13,000
19,000
37,000
Salvage value
Useful life,
22,000
12
in years
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