Which company you should buy the widget machine

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Reference no: EM13213923

QZY, Inc. is evaluating new widget machinesoffered 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.

Use excel to graph the NPW as a function of interest rate for all alternatives. Also a choice table for interest rates from 0% to 100%. Finally, which alternative should be chosen if MARR=15%?

Reference no: EM13213923

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