Solved using rate of return analysis

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Reference no: EM13909011

The problem below must be solved using rate of return analysis. Type B equipment has an installed cost of $9,000, a uniform annual benefit of $1,600, a salvage value of $3000, and a useful life of 6 years. Type A equipment has an installed cost of $10,000, a uniform annual benefit of $1,700, a salvage value of $3800, and a useful life of 6 years. If the MARR is 7%, which type of equipment should be selected, A or B? Justify your answer.

Reference no: EM13909011

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