QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. a) Construct a choice table for interest rates from 0% to 100%. B) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis. A B C First cost $15,000 $25,000 $20,000 Maintenance and operating 1,600 400 900 Annual benefits 8,000 13,000 9,000 Salvage value 3,000 6,000 4,500 a) Construct a choice table for interest rates from 0% to 100% b) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis
QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. a) Construct a choice table for interest rates from 0% to 100%. B) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis. A B C First cost $15,000 $25,000 $20,000 Maintenance and operating 1,600 400 900 Annual benefits 8,000 13,000 9,000 Salvage value 3,000 6,000 4,500 a) Construct a choice table for interest rates from 0% to 100% b) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be used for 3 years. a) Construct a choice table for interest rates from 0% to 100%. B) MARR = 15%. From which company if any should you buy the widget machine? Use
A | B | C | |
First cost | $15,000 | $25,000 | $20,000 |
Maintenance and operating | 1,600 | 400 | 900 |
Annual benefits | 8,000 | 13,000 | 9,000 |
Salvage value | 3,000 | 6,000 | 4,500 |
a) Construct a choice table for interest rates from 0% to 100%
b) MARR = 15%. From which company if any should you buy the widget machine? Use rate of return analysis
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