Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering three models: Model T A X First Cost $100,000 $110,000 $210,000 Economic Life 7 years 8 years 6 years Using the annual worth method, which of the three tube benders should RCMP buy? Yearly Net Savings $55,000 $50,000 $75,000 Click the icon to view the table of compound interest factors for discrete compounding periods when i = 11%. The annual worth of Model T is $ ☐. The annual worth of Model A is $ The annual worth of Model X is $ ☐. So, the Model (Round to the nearest cent as needed.) is the better choice to buy. Salvage Value $15,000 $35,000 $75,000
Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering three models: Model T A X First Cost $100,000 $110,000 $210,000 Economic Life 7 years 8 years 6 years Using the annual worth method, which of the three tube benders should RCMP buy? Yearly Net Savings $55,000 $50,000 $75,000 Click the icon to view the table of compound interest factors for discrete compounding periods when i = 11%. The annual worth of Model T is $ ☐. The annual worth of Model A is $ The annual worth of Model X is $ ☐. So, the Model (Round to the nearest cent as needed.) is the better choice to buy. Salvage Value $15,000 $35,000 $75,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP's MARR is 11 percent. The company is considering three models:
Model
T
A
X
First Cost
$100,000
$110,000
$210,000
Economic Life
7 years
8 years
6 years
Using the annual worth method, which of the three tube benders should RCMP buy?
Yearly Net Savings
$55,000
$50,000
$75,000
Click the icon to view the table of compound interest factors for discrete compounding periods when i = 11%.
The annual worth of Model T is $ ☐. The annual worth of Model A is $ The annual worth of Model X is $ ☐. So, the Model
(Round to the nearest cent as needed.)
is the better choice to buy.
Salvage Value
$15,000
$35,000
$75,000
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