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1. Green Rose Inc. is considering these following investments for year 2022: Machine A Machine B Machine C Initial amount Salvage Value 450,000 375,000 425,000
1. Green Rose Inc. is considering these following investments for year 2022: Machine A Machine B Machine C Initial amount Salvage Value 450,000 375,000 425,000 75,000 67,000 58,000 Cost savings 66,730 73,425 63,950 The following cost are associated to each of the machines: Inspection cost 3,000 Installation cost 3.500 Warranties 2,700 Testing cost 4,300 Training 4,500 a) Determine the Net investment of each Machine. b) Determine the accounting rate of return. c) Which of these investments would Green Rose Inc. purse if the required rate of return is 18%
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