Required information Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric. The hydraulic press (HP) will have a first cost of $675,000, annual costs of $200,000, and a salvage value of $70,000 after 5 years. Electric machine technology (EMT) will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $130,000 after 5 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Use an AW-based equation to determine the ROR on the extra investment required for the EMT alternative. The ROR on the extra investment for the EMT alternative is

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Required information
Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric. The hydraulic press (HP)
will have a first cost of $675,000, annual costs of $200,000, and a salvage value of $70,000 after 5 years. Electric
machine technology (EMT) will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $130,000
after 5 years.
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Use an AW-based equation to determine the ROR on the extra investment required for the EMT alternative.
The ROR on the extra investment for the EMT alternative is
Transcribed Image Text:Required information Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric. The hydraulic press (HP) will have a first cost of $675,000, annual costs of $200,000, and a salvage value of $70,000 after 5 years. Electric machine technology (EMT) will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $130,000 after 5 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Use an AW-based equation to determine the ROR on the extra investment required for the EMT alternative. The ROR on the extra investment for the EMT alternative is
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