Calculate the present worth of all options

Reference no: EM132525345

Question:

A diagnostics laboratory is considering one of the following microscopes with digital recording and pattern detection software:
Option A Option B Option C
Cost $20,000 $30,000 $15,000
Savings $1,199 $2,199 $1,000
IRR 6% 9% 7%

Each of the machine will have a 20-year life with no salvage value. There is a lot of debate within the company as to whether these devices are really going to last long, but they assume MARR of 10% as reasonable.

1. Calculate the Present Worth of all Options

2. Calculate IRR for all option

3. Which Option do you recommend and why?

4. What is MARR?

Reference no: EM132525345

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