Evaluating new widget machines

Reference no: EM13256822

QZY, Inc. is evaluating new widget machines offered by three companies. The machines have the following characteristics:

	A	B	C
First cost	$15,000	$25,000	$20,000
Maintenance and operating	1,600	400	900
Annual benefit	8,000	13,000	9,000
Salvage Value	3,000	6,000	4,500
Useful life in years	4	4	4

a) Construct a choice table for interest rates from 0% to100%b) MARR = 15% From which company, if any should you buy the widget machine? Use rate of return analisys.

Reference no: EM13256822

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