Determine which should be selected on the basis of rate

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Reference no: EM13157330

The manager of a canned food processing plant is trying to decide between two labelingmachines. Determine which should be selected on the basis of rate of return with a MARR of 20%per year. (i=30.3% ; select machine B)

Machine A B

First cost, $ -15,000 -25,000

Annual operating cost, $/year -1,600 -400

Salvage value, $3,000 4,000

Life, years 2 4

How do I show work for this by trail and error?

Reference no: EM13157330

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