Ranking of two projects Billox Company is evaluating a proposal to acquire a new high- precision vertical
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Ranking of two projects Billox Company is evaluating a proposal to acquire a new high- precision vertical mill for one of its production plants. The cost of the mill made by Delta Company is $36,500. The machine has an 8-year useful life and is expected to save $9,000 per year in costs. It has no salvage value. A machine made by Gamma Company costs $38,500 and is expected to save $8,000 per year over its 12-year life. It also has no salvage value. The company's cost of capital is 13 percent.
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