Please solve using Rate of Return method.

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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ENGINEERING ECONOMICS. Please solve using Rate of Return method.

 

Jevany wants to buy a truck from Leo and Friends Company. She's considering
between three types of brand namely: JoyMart, DeymYell and Nick-Olah.
Pertinent are shown in the figure. If the minimum required rate of return is 17%,
what should be selected? *
JOΥΜART
DEYMYELL
NICK-OLAH
First Cost
300, 000
400, 000
200, 000
Annual Operating
20, 000
30, 000
40, 000
Cost
Annual Labor Cost
50, 000
40, 000
30, 000
Insurance and
3%
3%
3%
Property Taxes
Payroll Taxes
Estimated Life
3%
3%
3%
20
20
20
Transcribed Image Text:Jevany wants to buy a truck from Leo and Friends Company. She's considering between three types of brand namely: JoyMart, DeymYell and Nick-Olah. Pertinent are shown in the figure. If the minimum required rate of return is 17%, what should be selected? * JOΥΜART DEYMYELL NICK-OLAH First Cost 300, 000 400, 000 200, 000 Annual Operating 20, 000 30, 000 40, 000 Cost Annual Labor Cost 50, 000 40, 000 30, 000 Insurance and 3% 3% 3% Property Taxes Payroll Taxes Estimated Life 3% 3% 3% 20 20 20
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