Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP'S MARR is 14 percent. The company is considering three models: Model T A X First Cost $90,000 $140,000 $190,000 Economic Life 6 years 6 years 5 years Yearly Net Savings $50,000 $80,000 $85,000 Using the annual worth method, which of the three tube benders should RCMP buy? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%. The annual worth of Model T is $ The annual worth of Model A is $ .The annual worth of Model X is $ (Round to the nearest cent as needed.) So, the Model is the better choice to buy. Salvage Value $25,000 $25,000 $75,000
Ridgley Custom Metal Products (RCMP) must purchase a new tube bender. RCMP'S MARR is 14 percent. The company is considering three models: Model T A X First Cost $90,000 $140,000 $190,000 Economic Life 6 years 6 years 5 years Yearly Net Savings $50,000 $80,000 $85,000 Using the annual worth method, which of the three tube benders should RCMP buy? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%. The annual worth of Model T is $ The annual worth of Model A is $ .The annual worth of Model X is $ (Round to the nearest cent as needed.) So, the Model is the better choice to buy. Salvage Value $25,000 $25,000 $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 14 percent. The company is considering three models:
Model
T
A
X
First Cost
$90,000
$140,000
$190,000
Economic Life
6 years
6 years
5 years
Yearly Net Savings
$50,000
$80,000
$85,000
Using the annual worth method, which of the three tube benders should RCMP buy?
Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%.
The annual worth of Model T is $ The annual worth of Model A is $ .The annual worth of Model X is $
(Round to the nearest cent as needed.)
So, the Model
is the better choice to buy.
Salvage Value
$25,000
$25,000
$75,000
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