Use cash flow analysis, Assume an interest rate of 6%. Use

Use cash flow analysis

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Reference no: EM131963644

The manger in a canned food processing plant is tryng to decide between two labeling machines.

Machine (A) Machine (B)

First cost $15,000 $25,000

Maintenance and operating costs 1,600 400

Annual benefit 8,000 13,000

Salvage value 3,000 6,000

Useful life, in years 6 10

Assume an interest rate of 6%. Use cash flow analysis to determine which machine should be chosen.

Reference no: EM131963644

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