Determine the rate of return on the atlas mower

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Reference no: EM13930191

Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower. Two machines are being considered, the Atlas and Zippy. The table shown below provides all necessary information for the two machines. The minimum attractive rate of return is 8%.

a) Determine the rate of return on the Atlas mower (to the nearest 1%)

b) Does the rate of return on Zippy mower exceed the MARR?

c) Use incremental rate of return analysis to decide which Machine to Purchase.

Reference no: EM13930191

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